Nikkei Falls 1.75% from Record, Markets Option to Wait-and-See
Japanese stocks weakened on Friday (April 17), with the Nikkei 225 falling 1.75% to close at 58,476. The index retreated from its record high as investors adopted a cautious stance ahead of the weekend, amidst anticipation of the latest developments in US-Iran peace negotiations.
From a geopolitical perspective, US President Donald Trump expressed confidence that the conflict with Iran could soon end, stating that Tehran had agreed to several terms, including abandoning its nuclear ambitions and reopening the Strait of Hormuz. Trump also announced a 10-day ceasefire between Israel and Lebanon, which is seen as paving the way for further US-Iran talks. However, the market remains in a wait-and-see mode as the details and follow-up to the negotiations remain unclear.
Meanwhile, on the domestic front, Bank of Japan Governor Kazuo Ueda offered no firm signal regarding the direction of interest rates ahead of this month's policy decision. He highlighted the challenge of balancing the risk of rising inflation with the risk of weakening growth, maintaining high uncertainty regarding the direction of monetary policy in the eyes of market participants.
The index's decline was led by technology and AI-related stocks, reflecting a shift to more defensive assets as risk appetite declined. Several issuers recorded notable declines, including Kioxia Holdings (-9.6%), Lasertec (-4.4%), Fujikura (-2.7%), SoftBank Group (-2.6%), and Advantest (-1.8%). (asd)
Source: Newsmaker.id
