FX.co ★ Japanese Shares Drop as Tech Rout Deepens

The Nikkei 225 experienced a decline of 0.7%, dropping to below 53,500, while the Topix Index decreased by 0.7% to settle at 3,626 on Friday. This downturn continued from the previous session, driven by a technology-driven selloff in the U.S. markets. Concerns about substantial investments in artificial intelligence and the potential disruption to software companies contributed to the slide. Additionally, a wider selloff in metals and cryptocurrencies added to the negative sentiment, highlighting extensive deleveraging in financial markets. In Japan, technology stocks were the hardest hit, with significant declines seen in Kioxia Holdings, which fell 5.6%, SoftBank Group, which decreased by 1.7%, and Advantest, which slid by 3.5%. Consumer and financial sectors were also affected, with notable declines in companies such as Nintendo, down 3.7%, and Mitsubishi UFJ, down 1.8%. Investors are also closely watching the upcoming lower house elections this weekend, where the ruling Liberal Democratic Party (LDP) is anticipated to gain seats and pursue expansionary fiscal policies under Prime Minister Sane Takaichi.