FX.co ★ Japanese Shares Fall on Wall Street Weakness

The Nikkei 225 index edged down by 0.1% to approximately 45,450, while the Topix index declined by 0.5% to 3,147 on Wednesday. This movement erased the gains from the previous session, following a lackluster performance from Wall Street. U.S. stocks retreated from their record highs on Tuesday, as Federal Reserve Chair Jerome Powell highlighted concerns over elevated valuations and expressed uncertainty regarding the trajectory of rate cuts amid challenging policy conditions. Market sentiment was further impacted by skepticism surrounding the sustainability of the AI-driven rally. Domestically, PMI data indicated that manufacturing activity in September continued to contract despite anticipations of growth, while the expansion in services activity occurred at a slower rate. Notable declines were seen in major companies such as Advantest (-1.3%), Sony Group (-3.4%), Fujikura (-1.3%), Keyence (-1.6%), and Sanrio (-2%).