FX.co ★ Japanese Shares Slip on Weak Wall Street Cues

On Tuesday, the Nikkei 225 declined by 0.4%, dipping below the 34,200 mark, while the broader Topix Index decreased by 0.2% to 2,523. This trend extended losses witnessed in the previous session, with both indices following a weaker performance observed on Wall Street. Investor sentiment was negatively impacted by heightened political pressure on the Federal Reserve, as former President Donald Trump escalated his criticism of Fed Chair Jerome Powell, stirring concerns about the central bank’s autonomy. Additionally, stagnant global trade negotiations contributed to the cautious market outlook. The appreciation of the yen, which climbed to a seven-month high on Monday, further pressured Japan's export-intensive sectors. The technology sector spearheaded the decliners, with notable losses from Lasertec (-0.9%), Tokyo Electron (-0.6%), and Recruit Holdings (-2.3%). Other prominent companies such as Fujikura (-1.6%), Mitsubishi Heavy Industries (-0.9%), and Nintendo (-1%) also experienced declines.