FX.co ★ Japanese Shares Fall as Traders Weigh Data

The Nikkei 225 index declined by 0.6% to approximately 44,650, while the broader Topix index fell by 0.9% to 3,110 on Wednesday. This continued downward trend reflects investors' response to a mix of economic indicators. In the third quarter, business sentiment among large manufacturers reached its highest point since the fourth quarter of 2024. However, the ongoing impact of U.S. tariffs continues to cast a shadow over future prospects. Furthermore, recent data highlighted weaknesses in retail sales and industrial production, pointing to ongoing challenges. In terms of policy, the Bank of Japan's September Summary of Opinions revealed differing views among policymakers. Some advocate for additional rate hikes should growth and inflation trends continue positively, while others prefer maintaining low rates to safeguard the economy from risks associated with tariffs. Notable declines were seen in companies such as Mitsubishi Heavy Industries, which fell by 3.4%, IHI Corp, down by 5.3%, and Toyota Motor, which decreased by 1.4%.