FX.co ★ Japanese Shares Fall for Second Session

The Nikkei 225 Index declined 0.6% to around 63,300 on Tuesday, while the broader Topix Index lost 0.3% to 3,948, marking a second straight session of losses for Japanese equities led by technology shares. The pullback came despite a strong overnight rally in major US tech stocks, as investors remained cautious about the sustainability of the artificial intelligence-driven trade.

Market participants also continued to assess the impact of the yen’s sharp appreciation following coordinated efforts by Japan and the US to shore up the currency, while staying alert to the risk of further intervention. A stronger yen weighs on the earnings outlook for Japan’s export-oriented companies and diminishes the appeal of domestic equities to foreign investors.

In the technology sector, Kioxia Holdings (-1%), SoftBank Group (-2.4%) and Advantest (-2.2%) recorded notable declines. Financials and consumer names also weakened, with Mitsubishi UFJ (-1.8%) and Fast Retailing (-1.7%) among the prominent losers.