FX.co ★ Japanese Shares Track Wall Street Lower

The Nikkei 225 index declined by 0.4%, falling below 48,400, while the broader Topix index decreased by 1.1% to 3,220 on Friday. This movement indicates a pullback from the record highs that Japanese shares had recently achieved, echoing a downward trend in Wall Street from the previous night. The decline can largely be attributed to growing concerns about high valuations, particularly in stocks related to artificial intelligence. Investors are also considering the impact of the ongoing US government shutdown and the Federal Reserve's interest rate projections. On the domestic front, recent data revealed that producer prices in September increased more than anticipated, which supports the Bank of Japan's hawkish monetary stance. Notable stocks that experienced declines include SoftBank Group, which decreased by 1.6%, Advantest with a 0.8% drop, Sony Group falling by 2.5%, Mitsubishi Heavy Industries down by 1.7%, and Toyota Motor declining by 1.2%. Nonetheless, by the end of the week, the Nikkei and Topix are poised to close with gains of approximately 5% and 3%, respectively.