FX.co ★ Japan’s Nikkei Declines on Profit-Taking

The Nikkei 225 Index decreased by 0.45% to 47,735 on Wednesday, retreating from its record highs. This dip came as investors opted to secure profits following recent surges driven by the anticipation of new stimulus measures under the appointment of Prime Minister Sanae Takaichi, who is a firm advocate of "Abenomics" policies. Additionally, weaker-than-anticipated wage data dampened the outlook for Bank of Japan interest rate increases, as real wages fell by 1.4% in August compared to the previous year, marking the eighth consecutive month of decline. Simultaneously, technology stocks reflected losses observed on Wall Street, particularly after a significant drop in Oracle reignited concerns about the viability of the artificial intelligence sector. The prolonged US government shutdown further contributed to market caution. Among the most prominent stocks experiencing declines were SoftBank Group, Disco Corp, and Tokyo Electron, with respective losses of 2%, 2%, and 2.8%.