Japanese Stocks Drop on Weak Wall Street Signals
The Nikkei 225 index fell 0.7% to around 39,100 while the broader Topix index fell 0.3% to 2,733 on Wednesday, tracking losses on Wall Street overnight as markets took a breather from a post-election rally. Domestically, data showed that Japanese producer prices rose at the fastest pace in 14 months in October, highlighting ongoing inflationary pressures.
Investors also continued to assess the impact of Japan’s 10 trillion yen stimulus plan for AI chipmakers aimed at strengthening critical supply chains amid ongoing U.S.-China trade tensions. Technology stocks led the declines, with significant losses in Disco (-1.1%), Lasertec (-1%), and Advantest (-1.4%). SoftBank Group also experienced volatility, despite reporting a strong quarterly profit of 608.5 billion yen from its Vision Fund. Meanwhile, Nissan Motor shares rose for a second straight day after activist investor Effissimo disclosed a stake in the struggling automaker.
Source: Trading Economics