Japanese Stocks Fall, Tech Profit-Taking Pressures
Japanese stocks weakened on Friday as investors began to take profits from previously outperforming technology stocks, while renewed concerns about steel and aluminum tariffs added pressure on companies with significant operations in the United States. The Topix index fell 1.6% to 3,818.85, while the Nikkei 225 fell 1.2% to 56,941.97. Of the 1,665 stocks on the Topix, only 287 rose, 1,348 fell, and 30 remained unchanged—indicating widespread pressure.
The technology and banking sectors were the main drags. Concerns about the AI theme re-emerged after the decline in US stocks, causing the Japanese market to correct. Mitsubishi UFJ Trust & Banking economist Naoya Oshikubo believes this correction was triggered by concerns about AI, as well as the fact that some AI-related stocks were overpriced, prompting investors to capitalize on the momentum to realize profits.
Pressure was also felt in logistics and steel stocks. Logistics companies like Yamato Holdings were hit harder by concerns that AI platforms could disrupt the industry. Meanwhile, steel stocks like Nippon Steel and Yamato Kogyo weakened in the afternoon session after a Financial Times report suggested the Trump administration planned to partially reduce tariffs in the sector. Iwai Cosmo analyst Taku Sugawara believes tariffs have been considered positive for companies doing business in the US, so if they were reduced, the impact could actually be significantly negative for the issuers involved. (asd)
Source: Newsmaker.id
