FX.co ★ Japanese Shares Fall as Traders Weigh Data

On Wednesday, the Nikkei 225 index decreased by 0.85% to 44,551, while the broader Topix index saw a decline of 1.37% to 3,095, continuing the downward trend observed earlier this week as investors processed varied economic indicators. Business sentiment among major manufacturers improved in the third quarter, reaching its highest point since the fourth quarter of 2024; however, ongoing concerns regarding US tariffs continued to cast uncertainty over future prospects. In the meantime, disappointing figures in retail sales and industrial production underscored ongoing economic challenges. Sentiment was further negatively impacted by the US government shutdown, following lawmakers' failure to reach a consensus on a provisional funding agreement, thereby elevating concerns about its potential duration and economic repercussions. Noteworthy decliners included SoftBank Group (-2.4%), Lasertec (-2.4%), Mitsubishi Heavy Industries (-3.8%), IHI Corp (-7.1%), and Toyota Motor (-1%).