FX.co ★ Japanese Shares Fall for Second Session

Japanese equities dropped for the second day in a row on Tuesday, with the Nikkei 225 Index decreasing by 1% to fall below the 49,700 mark, and the broader Topix Index down by 0.9% to approximately 3,400. This decline mirrored another AI-driven selloff on Wall Street, as investors prepared for a crucial U.S. jobs report that is expected to influence the Federal Reserve's monetary policy decisions. Domestically, investor sentiment was cautious ahead of an anticipated Bank of Japan interest rate increase later in the week, bolstered by recent robust economic data. The technology and AI sectors led the market losses, with significant downturns in companies like SoftBank Group (-1.1%), Kioxia Holdings (-3.1%), Fujikura (-5%), Disco Corp (-1.4%), and Tokyo Electron (-0.7%). There was also notable selling pressure in major financial, consumer, and industrial sectors, affecting stocks such as Mitsubishi UFJ (-0.7%), Sony Group (-0.3%), and Mitsubishi Heavy Industries (-1.3%).