Japan shares extend losses as rate uncertainty, geopolitical woes curb appetite
EWJ•Japanese shares fell for a second consecutive session, with the Nikkei 225 down 0.9% to 69,366.14 and the Topix down 1.54% to 4,090.19. Investors weighed the U.S. rate outlook and geopolitical tensions affecting oil supplies.
1. Markets extend declines
Japanese shares fell roughly 1% on Thursday as investors paused after recent rallies. Resona Holdings strategist Hiroki Takei said profit-taking had picked up after shares rose rapidly and that selling pressure appeared to be continuing.
2. Rates and tensions weigh
Federal Reserve minutes showed divisions over the rationale for September’s rate hike, while most participants signalled another increase by year-end. The 10-year Treasury yield hit a 24-year high overnight before paring gains. Increased attacks on shipping in the Gulf and Strait of Hormuz raised concerns over Middle East oil supplies and pushed crude prices higher.
3. Stocks diverge
Japanese AI-related shares were subdued despite Samsung Electronics projecting a nearly ninefold year-over-year increase in third-quarter operating profit. Rohm fell 3.5%, SoftBank Group shed nearly 3% and Yaskawa Electric dropped 2.6%. The Nikkei had 187 decliners and 38 advancers; Fast Retailing and Seven & i Holdings were due to report earnings after the bell.
