FX.co ★ Japanese Shares Slip as Fed Signals Caution

The Nikkei 225 Index declined by 0.3% to slip below the 36,700 mark, while the broader Topix Index decreased by 0.5% to 2,682 on Thursday. This retreat follows losses from the previous session, as the US Federal Reserve maintained a cautious outlook amid uncertainties spurred by tariffs. Federal Reserve Chair Jerome Powell indicated that the central bank is not presently considering a preemptive interest rate reduction in response to the potential economic repercussions of President Donald Trump's tariffs. Domestically, minutes from the latest Bank of Japan meeting revealed that the central bank would persist in increasing interest rates should its economic and inflation forecasts prove accurate. However, certain policymakers voiced concerns regarding the challenges posed by evolving US trade policies. Among the significant decliners in the market were Kawasaki Heavy Industries (-1.3%), Nintendo (-1.2%), Sony Group (-3%), Toyota Motor (-0.8%), and SoftBank Group (-2.4%).