FX.co ★ Japanese Stocks Retreat as Renewed Tech Weakness

Japan’s Nikkei 225 Index fell 1.3% on Friday, slipping below the 64,000 mark and ending a three-day winning streak, as technology stocks came under renewed selling pressure following disappointing earnings from major US tech companies. In after-hours trading in the US, Amazon shares dropped about 7% after the company signaled a sharp increase in capital expenditures, while Intel plunged 23% after issuing a weaker-than-expected quarterly outlook and pointing to a slowdown in the PC market.

Domestically, investors are awaiting earnings from Kioxia Holdings and Tokyo Electron for further clarity on AI-related demand; their shares fell 6% and 3.6%, respectively. Other key technology names also recorded steep losses, including Advantest (-6.1%), SoftBank Group (-4.9%), and Lasertec (-9.1%). At the same time, market participants shifted their focus to the upcoming Bank of Japan policy decision, where policymakers are widely expected to keep interest rates unchanged.