FX.co ★ Japanese Shares Follow Wall Street Lower

The Nikkei 225 Index declined by 1%, falling below the 42,300 mark on Monday. This drop continues the losses seen in the previous session, mirroring a broad selloff on Wall Street triggered by recent US inflation data indicating increased prices. Investor sentiment was further impacted by a ruling from a US federal appeals court, declaring President Donald Trump's reciprocal tariffs illegal, with the administration facing a deadline of October 14 to appeal to the US Supreme Court. On the domestic front, Japanese data revealed that companies increased capital expenditure by 7.6% in the second quarter of 2025, rising from 6.4% in the first quarter and surpassing predictions of 6.2%. Technology stocks spearheaded the decline, mirroring similar downtrends in the US, with significant drops noticed in companies such as Advantest (-6.3%), Disco (-6.8%), SoftBank Group (-4.3%), Lasertec (-3%), and Tokyo Electron (-1.7%).