FX.co ★ Japanese Shares Follow Wall Street Declines

The Nikkei 225 Index experienced a 1.1% decline, falling to below 47,800, while the broader Topix Index decreased by 0.8% to 3,177, marking the conclusion of a two-day winning streak on Friday. This downturn in Japanese stocks mirrored the overnight losses observed on Wall Street. Market sentiment was negatively impacted after two US regional banks reported troubled loans, reigniting fears of broader credit market risks. Adding to investor apprehension were escalating US-China trade tensions and the ongoing US government shutdown, both of which further reduced risk appetite. On the domestic front, investors are grappling with additional uncertainty as opposition parties have not yet reached a consensus on the ruling Liberal Democratic Party's proposal for an October 21 vote to elect a new prime minister. The decline affected a broad range of stocks, with significant losses from major players such as SoftBank Group (-2.9%), Disco Corp (-3.6%), Advantest (-2%), Mitsubishi UFJ (-2.5%), and Tokyo Electric Power (-3.2%). For the week, both the Nikkei and Topix indexes are headed towards modest declines.