FX.co ★ Japanese Shares Extend Fall on Tech Rout

The Nikkei 225 Index declined by 0.34%, closing at 48,538, while the broader Topix Index dropped by 0.17% to finish at 3,246 on Wednesday. This marks the fourth consecutive session of losses for Japanese shares, as technology stocks remain under pressure due to valuation concerns. Market participants are also warily anticipating Nvidia’s much-anticipated earnings report, given the significant involvement of Japanese technology firms in the global AI supply chain. Among the companies experiencing notable declines were Advantest, down 0.6%, Lasertec, down 2.2%, Disco Corp down 3.4%, Tokyo Electron down 2%, and Hitachi down 1.5%. Additionally, Japanese equities are contending with challenges stemming from increased domestic bond yields and a diplomatic dispute with China. On Tuesday, Bank of Japan Governor Kazuo Ueda informed Prime Minister Sanae Takaichi that the central bank is incrementally raising interest rates to guide inflation towards its 2% target, aiming to foster sustainable economic growth.