FX.co ★ Japanese Shares Fall Amid Global Selloff

The Nikkei 225 Index dropped by 1.25% to close at 52,655, while the broader Topix Index declined by 0.8% to 3,538 on Monday. This downturn reversed previous gains, mirroring the trend across global markets as risk sentiment weakened. The fall was influenced by a sharp selloff in precious metals, leading to forced liquidation in other asset classes. Additionally, technology stocks faced increased pressure due to renewed concerns about the sustainability of investments in artificial intelligence. In Japan, Prime Minister Sanae Takaichi indicated over the weekend that a depreciating yen could provide significant advantages for export industries. Investors are also preparing for the February 8 snap election for the lower house, where Takaichi’s ruling party is anticipated to secure more seats and pursue expansionary fiscal policies. Technology stocks bore the brunt of the losses, with significant declines seen in Kioxia Holdings (-13.4%), Advantest (-4.5%), Lasertec (-14%), SoftBank Group (-3.6%), and Disco Corp (-5.9%). Furthermore, major financial, consumer, and industrial stocks also experienced downward pressure.