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

On Thursday, the Nikkei 225 Index experienced a decline of 0.51%, settling at 37,554, while the broader Topix Index decreased by 1.03% to 2,756. This downward movement erased the gains achieved in the previous session, as U.S. stock markets faced challenges in maintaining upward momentum overnight. The U.S. displayed a lackluster market performance, with concerns arising from weak labor and services data that highlighted the economic impact of trade policy uncertainty. Notably, the ADP report indicated a significant slowdown in U.S. private-sector hiring, reaching its lowest point in over two years. Additionally, the U.S. ISM services PMI for May revealed the first contraction in nearly a year. Domestically, Japan recorded a fourth consecutive monthly decrease in real wages for April, as continuous inflation overshadowed nominal wage growth, leading to apprehensions about consumer purchasing power. Leading the losses were prominent index components such as IHI Corp (-4.6%), Mitsubishi UFJ (-1.4%), Nintendo (-2%), Toyota Motor (-2.7%), and Sony Group (-1.5%).