Japanese Shares Track Wall Street Lower
Japanese shares fell sharply, with the Nikkei 225 Index down 2.5% to around 50,200 and the Topix Index dropping 1.3% to 3,267. This decline follows Wall Street's selloff, driven by concerns over high AI valuations and warnings from Goldman Sachs and Morgan Stanley CEOs about potential market drawdowns. Tech stocks, including SoftBank and Tokyo Electron, saw significant losses. Investors are also anticipating key economic data this week, which may influence the Bank of Japan's policy decisions, amid speculation of a possible rate hike in December.
The Nikkei 225 Index fell 2.5% to around 50,200, while the broader Topix Index dropped 1.3% to 3,267 on Wednesday, extending losses from the previous session and mirroring Wall Street’s overnight selloff amid renewed concerns over lofty AI valuations.
Warnings from Goldman Sachs CEO David Solomon and Morgan Stanley CEO Ted Pick about potential market drawdowns over the next two years further dampened sentiment.
Tech and AI-related stocks led the decline, with SoftBank Group, Advantest, Lasertec, Fujikura, and Tokyo Electron plunging between 3.2% and 9.4%.
Other major names also weakened, including Mitsubishi UFJ (-1.7%), Toyota Motor (-2%), and Mitsubishi Heavy Industries (-3.2%).
On the domestic front, investors looked ahead to key economic releases this week for clues on the Bank of Japan’s policy outlook, as speculation builds over a possible rate hike in December.
