FX.co ★ Japanese Shares Struggle for Clear Direction

On Monday, the Nikkei 225 Index experienced a marginal decline of 0.1%, settling at approximately 50,400, whereas the Topix Index saw an increase of 0.25%, reaching 3,370. The performance of Japanese shares was mixed as investor hesitation prevailed. This came in response to data revealing that real wages have decreased for the tenth consecutive month, alongside more severe than initially estimated economic contraction for the third quarter. These factors complicated the outlook regarding potential interest rate hikes by the Bank of Japan in the upcoming week. Furthermore, the downside pressure was somewhat mitigated by expectations that the US Federal Reserve might implement a rate cut this week. Geopolitical tensions also cast a shadow over market sentiment following reports from Japan that a Chinese fighter jet had locked its fire-control radar onto Japanese military aircraft for the first time. Among the notable decliners were SoftBank Group, which fell by 1.7%, Lasertec with a decrease of 3.9%, and Advantest, down by 2%. Conversely, Kioxia Holdings, Fujikura, and Mitsubishi Heavy showcased strong performances, registering gains of 2.7%, 5.2%, and 1.9%, respectively.