FX.co ★ Japanese Shares Fall on Market Caution

The Nikkei 225 Index declined by 1.2%, slipping below the 50,500 mark, while the more inclusive Topix Index decreased by 1% to 3,365 on Friday. This contraction trimmed the gains seen in the previous session as investors adopted a cautious stance in anticipation of a crucial US inflation report that could impact Federal Reserve policy decisions. In the US, stock markets stalled after labor data revealed persistent strength in the job market, which slightly dampened the expectation for a Fed rate cut next week. Additionally, rising global bond yields placed further pressure on equities, with the Bank of Japan hinting at a possible interest rate hike later this month. Significant losses were recorded among major corporations such as Advantest (down 2.5%), Fanuc (down 0.9%), Fujikura (down 0.3%), Tokyo Electron (down 2.3%), and Toyota Motor (down 2%). In corporate developments, Mitsubishi UFJ has announced its intention to enhance its partnership with Morgan Stanley in asset management, expanding on their 17-year cooperation.