Japanese Stocks Pare Losses as Tech Selloff Eases
Japan’s Nikkei 225 Index fell as much as 2.3% before recovering to close 0.34% lower at 62,693 on Friday, as selling pressure in technology and artificial intelligence stocks began to ease. Despite the late-session recovery, the benchmark index declined 4% for the week, marking its second consecutive weekly loss as investors shifted away from high-performing tech and AI shares toward safer assets, including government bonds. Market sentiment was also weighed down by escalating tensions in the Middle East, following reports that the US and Israel had prepared plans for possible renewed strikes against Iran after next month’s midterm elections. Several major index constituents remained under pressure, including Taiyo Yuden (-3.9%), Disco Corp (-3.8%), Mitsubishi UFJ (-2.3%), Hitachi (-4.4%) and Nintendo (-1.8%). Meanwhile, Japan’s inflation accelerated in September, rising above the Bank of Japan’s 2% target and reinforcing expectations of another interest rate hike this year.
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Japan’s Nikkei 225 Index fell as much as 2.3% before recovering to close 0.34% lower at 62,693 on Friday, as selling pressure in technology and artificial intelligence stocks began to ease. Despite the late-session recovery, the benchmark index declined 4% for the week, marking its second consecutive weekly loss as investors shifted away from high-performing tech and AI shares toward safer assets, including government bonds. Market sentiment was also weighed down by escalating tensions in the Middle East, following reports that the US and Israel had prepared plans for possible renewed strikes against Iran after next month’s midterm elections.
Several major index constituents remained under pressure, including Taiyo Yuden (-3.9%), Disco Corp (-3.8%), Mitsubishi UFJ (-2.3%), Hitachi (-4.4%) and Nintendo (-1.8%). Meanwhile, Japan’s inflation accelerated in September, rising above the Bank of Japan’s 2% target and reinforcing expectations of another interest rate hike this year.