FX.co ★ Japanese Shares Drop for Second Session

The Nikkei 225 Index decreased by 0.9% to approximately 51,500, while the broader Topix Index declined by 0.3% to 3,500 on Thursday. This marks the second consecutive session of losses for Japanese equities, driven by declines in technology and financial stocks as investors engaged in profit-taking. Earlier weekly gains were partially reversed as initial optimism for the year, which had previously boosted risk assets, started to dissipate due to escalating geopolitical and economic uncertainties. Market participants are also evaluating the potential repercussions of China's newly implemented export restrictions on military-use goods to Japan, a factor that may impact the nation's industrial and manufacturing sectors. Notably, major technology firms experienced significant declines: Tokyo Electron fell by 2.8%, SoftBank Group dropped 2.4%, Advantest decreased by 1.2%, Lasertec was down 1.5%, and Hitachi retreated by 2.0%. Financial stocks also saw reductions, with Mitsubishi UFJ declining by 1.3%, Sumitomo Mitsui falling by 1.9%, and Mizuho Financial decreasing by 1.2%.