Nikkei Drops for Fourth Straight Day
Japanese stocks weakened again on Tuesday, with the Nikkei 225 down 0.4% and moving below 56,600, extending its decline to four consecutive sessions. The greatest pressure came from the technology and defense sectors, as the market continued to assess the risk of AI-driven disruption, which is considered to be disruptive to several industries, particularly software, business services, and media.
On the stock market, SoftBank Group fell 4% due to its large exposure to the global technology sector, while HR tech issuer Recruit Holdings fell 3.8%. Concerns that the AI wave could change cost structures and competitiveness have once again led to selling of growth-oriented stocks.
Defense stocks also fell: Mitsubishi Heavy Industries fell 1.4% and Kawasaki Heavy Industries fell 2.6%. Pressure spread to pharmaceutical and consumer stocks, adding to the overall index's decline.
From a policy perspective, the market received no new fuel. Bank of Japan Governor Kazuo Ueda stated that Prime Minister Sanae Takaichi did not make any specific requests during their regular meeting on Monday, so there were no additional signals regarding monetary or fiscal policy that could change sentiment in the near term. (asd)
Source: Newsmaker.id
