FX.co ★ Japanese Shares Fall as Tech Stocks Weigh

On Tuesday, the Nikkei 225 Index experienced a slight decline of 0.14%, closing at 50,843. This dip resulted from investors capitalizing on earlier gains, particularly in high-performing technology stocks, as apprehensions persist regarding the elevated valuations of AI-related companies. Significant downturns were observed in several AI-linked firms, including Kioxia Holdings (down 0.9%), Fujikura (down 6%), Advantest (down 4.1%), and Disco Corp (down 4.5%).

In terms of corporate developments, Honda Motor saw a 0.8% increase in its share price despite lowering its annual profit outlook due to the challenges posed by US tariffs and a global chip shortage, along with growing competition from Chinese electric vehicle manufacturers. Sony Group also experienced a boost, with shares rising by 5.5% following an upward revision of its profit forecast.

Economically, Japan reported an unprecedented current account surplus of JPY 4.5 trillion in September, driven by a strong performance in exports outpacing imports.