FX.co ★ Japanese Stocks Close Near 4-Week Low

The Nikkei 225 Index experienced a significant decline of 3.2%, closing at 48,703, while the broader Topix Index fell by 2.88% on Tuesday. This marked the indices' third consecutive session of losses, primarily driven by investors offloading tech stocks in response to Wall Street's sharp downturn overnight. The sell-off occurred in anticipation of the US jobs report and Nvidia's quarterly earnings. Tuesday's drop represented the Nikkei's most substantial fall in over seven months, reaching its lowest point since October 23. Meanwhile, escalating tensions between Tokyo and Beijing contributed to negative market sentiment, with retail stocks showing mixed performance following a steep decline the previous session. Market participants paid close attention to discussions involving Japanese Prime Minister Sanae Takaichi, Bank of Japan Governor Kazuo Ueda, and a separate meeting between Takaichi and the government's tax commission. These meetings were scrutinized for insights into the central bank's monetary policy direction and the government's fiscal strategy. Notable decliners included Fujikura, which tumbled 9.9%, Furukawa Electric, down 9.5%, Sumitomo Electric, which fell 9.1%, SoftBank Group, decreasing 7.5%, and Tokyo Electron, declining 5.5%.