FX.co ★ Japanese Shares Fall on Tech Rout

The Nikkei 225 index declined by 0.66% to end the session at 40,800 on Friday, concluding the week with a 1.58% decline. The downturn was largely driven by significant pressure on technology stocks. Notably, Tokyo Electron experienced an 18% plummet after it revised down its full-year profit forecast due to subdued demand from logic chip manufacturers. The technology sector saw widespread losses, with Lasertec dropping 5.8%, Hitachi falling 8.8%, Socionext decreasing by 4.1%, Disco slipping 3.6%, and Advantest declining by 1.3%. Investor sentiment was further dampened by renewed trade tensions following US President Donald Trump's decision to reaffirm a 10% global tariff and introduce reciprocal duties of up to 41% on nations without trade agreements, intensifying concerns about potential supply chain disruptions. Additionally, Japanese stocks mirrored the weakness in US futures, influenced by a significant after-hours decline in Amazon shares due to subpar forecasts.