FX.co ★ Japanese Shares Track Wall Street Lower

The Nikkei 225 Index experienced a decline of 1.5% to approximately 50,530, while the more comprehensive Topix Index decreased by 0.9% to 3,350 on Friday. This downturn erased the gains from the previous session, influenced by a significant tech-driven selloff on Wall Street the night before. The market's initial uplift from the reopening of the US government was dampened by apprehensions over inflated AI valuations and moderated anticipations regarding Federal Reserve interest rate reductions. In Japan, Prime Minister Sanae Takaichi advised the Bank of Japan to maintain low interest rates, despite indications from central bank officials suggesting a potential rate hike in the near future. The decline was led by SoftBank Group, which plummeted nearly 8% to a six-week low, attributed to increasing losses in its technology and AI-related investments. Other technology stocks also saw declines, with Advantest falling 4.4%, Fujikura dropping 6.3%, Tokyo Electron losing 4.8%, Lasertec declining by 3.6%, and Hitachi decreasing by 4.9%. Nevertheless, both the Nikkei and Topix indexes appear set to conclude the week with modest gains.