Japanese Shares Fall After Wall Street Selloff
The Nikkei 225 Index fell 1% to below 38,700, while the broader Topix Index fell 0.5% to 2,706 on Thursday, hitting a three-week low. The declines mirrored a sharp selloff on Wall Street after the U.S. Federal Reserve signaled fewer interest rate cuts in 2025 than previously expected. The Fed now expects just two rate cuts next year, down from the four projected in its September outlook. Investors also remained cautious ahead of the Bank of Japan’s monetary policy decision later in the day.
The central bank is likely to hold off on raising interest rates as policymakers assess the latest economic data. Technology stocks were the hardest hit, with significant losses for Advantest (-4.5%), SoftBank Group (-4.3%), and Tokyo Electron (-2.5%). Other major stocks also fell, including Honda Motor (-1.3%), Toyota Motor (-1.3%), and Sony Group (-0.9%).
Source: Trading Economics
