FX.co ★ Japanese Shares Fall as Tech Stocks Weigh

On Wednesday, the Nikkei 225 Index saw a decline of 0.9%, falling below the 48,900 mark, retreating from its recent record highs. This downturn was primarily driven by the technology sector, as investors opted to realize profits following a robust rally. Notable declines included SoftBank Group tumbling by 9.2%, Advantest by 3.2%, and Lasertec by 2.3%, with significant drops also observed in Fujikura (-3%) and JX Advanced (-4.6%). Conversely, Toyota Motor surged by 4.6%, while IHI Corp experienced a gain of 2.1%. Market participants continued to evaluate Japan's political climate and policy direction after Sanae Takaichi’s appointment as prime minister. The ruling Liberal Democratic Party established a coalition with the Japan Innovation Party. However, questions linger about the durability of this alliance and whether Takaichi might implement more radical policies. Economically, Japan recorded an unexpected trade surplus in September, with exports rising by 4.2% compared to a 3.3% increase in imports.