Japanese Stocks Fall, Risk Sentiment Weakens
Japanese stocks weakened on Friday (February 20th), ending a two-day rally, with the technology and banking sectors primarily under pressure. The Nikkei 225 index fell 1% to around 56,900, while the Topix index fell 1.2% to 3,805, as investors again reduced risk exposure.
Global sentiment worsened amid escalating tensions between the United States and Iran. The increased US military presence in the Middle East heightened market concerns, as President Donald Trump was said to be considering options to pressure Tehran to be more serious at the negotiating table. This dampened risk appetite and pushed Asian markets to a more defensive stance.
Investors are also likely awaiting the release of key US economic data that could shape Fed policy expectations. Caution was heightened after the minutes of the latest meeting showed some officials were still open to another interest rate hike if inflation remains persistently high, making the future direction of interest rates a major factor for the stock market once again.
Domestically, data showed that Japan's headline and core inflation slowed in January, reflecting the effects of government policies aimed at easing pressures on the cost of living. At the stock level, declines were led by Tokyo Electron (-3.5%), SoftBank Group (-3.3%), and Mitsubishi UFJ (-2.2%). Despite corrections on Friday, both benchmark indexes are still on track to close the week relatively stable.
Source: Newsmaker.id
