The Japanese stock market continued its decline for the third consecutive session, seeing a modest dip on Friday following mixed signals from Wall Street overnight. The benchmark Nikkei 225 index slid below the 38,700 mark as traders awaited the Bank of Japan's latest monetary policy decision.
The Nikkei 225 Index dropped by 71.02 points, or 0.18 percent, to 38,649.45 after hitting a low of 38,554.75 earlier in the session. This comes after a slightly lower close on Thursday.
Market heavyweight SoftBank Group saw an increase of nearly 2 percent, while Fast Retailing, the operator of Uniqlo, fell by over 1 percent. In the automotive sector, Honda and Toyota both dipped by almost 1 percent.
Technology stocks also faced losses, with Advantest down nearly 1 percent, and Screen Holdings and Tokyo Electron each edging down 0.3 percent.
The banking sector showed mixed results: Mitsubishi UFJ Financial dipped slightly by 0.1 percent, whereas Sumitomo Mitsui Financial gained more than 2 percent and Mizuho Financial edged up 0.5 percent.
Among major exporters, Mitsubishi Electric rose nearly 2 percent and Canon edged up 0.5 percent. Conversely, Panasonic declined by almost 1 percent and Sony fell by over 1 percent. Sumco emerged as a major loser, dropping almost 3 percent.
On the positive side, Kawasaki Kisen Kaisha, Mitsubishi Heavy Industries, Nidec, and Mitsui O.S.K. Lines all gained more than 3 percent, while Taiheiyo Cement, Nippon Yusen K.K., and NEXON each added nearly 3 percent.
In currency markets, the U.S. dollar traded in the lower 157 yen range on Friday.
Turning to Wall Street, stocks witnessed a relatively quiet session on Thursday as traders took a break following the previous day's rally. Despite the choppy trading, the Nasdaq and the S&P 500 once again reached new record closing highs. The Nasdaq climbed 59.12 points, or 0.3 percent, to 17,667.56, while the S&P 500 rose 12.71 points, or 0.2 percent, to 5,433.74. However, the Dow Jones bucked the uptrend, slipping 65.11 points, or 0.2 percent, to 38,647.10.
Across the Atlantic, major European markets all experienced declines. The U.K.'s FTSE 100 Index slid by 0.6 percent, while Germany's DAX Index and France's CAC 40 Index both plunged by 2.0 percent.
In commodities, crude oil prices settled higher on Thursday due to expectations of increased demand and tighter supplies. West Texas Intermediate Crude oil futures for July rose by $0.12, ending at $78.62 per barrel.
