FX.co ★ Japanese Shares Fall on Weak Global Sentiment

The Nikkei 225 fell by 1.74% to settle at 51,497, while the broader Topix index decreased by 0.65% to close at 3,310 on Tuesday. Both indices retreated from their record peaks due to weak global sentiment prompting investors to lock in profits. The market's mood was dampened by lackluster U.S. manufacturing figures and uncertainty surrounding the Federal Reserve's policy direction, as Fed officials conveyed mixed signals regarding a possible policy adjustment in December. Additionally, confusion emerged following U.S. President Donald Trump's remarks about restricting Nvidia's most advanced chips from being sold outside the United States. On the domestic front, investors looked forward to crucial economic data set to be released this week, which could offer guidance on the Bank of Japan's policy trajectory, particularly the possibility of a December rate hike. Shares in the technology and artificial intelligence sectors were notably affected, with significant downturns in companies such as SoftBank Group (-7%), Advantest (-5.9%), IBIDEN (-1.8%), Fujikura (-2.2%), and Hitachi (-1.8%).