FX.co ★ Japanese Shares Stabilize After Sharp Selloff

On Wednesday, the Nikkei 225 Index saw a modest increase of 0.2%, reaching 48,800, while the Topix Index edged up by 0.1% to 3,254, bringing a pause to a sharp three-day downturn. This recovery came amid stabilized market sentiment despite a further selloff in Wall Street the previous night. Recently, global equity markets have faced pressure from concerns over elevated valuations in the artificial intelligence sector and ambiguity surrounding the Federal Reserve's approach to interest rate adjustments. Investors were also focused on the forthcoming earnings announcement from AI chipmaker Nvidia, a key event considering the involvement of Japanese tech companies in the global AI supply chain. Significant advances were recorded by SoftBank Group, rising 1%, Fast Retailing with a 1.4% increase, Furukawa Electric climbing 2%, Toyota Motor up 0.3%, and Recruit Holdings advancing 0.9%. Economically, data indicated that Japan's machinery orders saw a greater-than-anticipated rise in September, indicating solid capital expenditure.