Japanese indexes corrected on Wednesday, with the Nikkei 225 down 0.1% to ±45,450 and the Topix down 0.5% to 3,147, erasing the previous session's gains. Pressure came from Wall Street, which retreated from record highs after Fed Chairman Jerome Powell highlighted overpriced valuations and uncertainty about the direction of interest rate cuts amid a complex policy environment.
Sentiment was also weighed down by doubts about the sustainability of the AI-driven rally that has been driving major US technology stocks. Investors in Japan tended to reduce risk ahead of the next round of global data and catalysts, while weighing the prospects for more moderate growth.
Domestically, the PMI release showed that Japanese manufacturing activity in September contracted despite expectations for expansion, while services grew at a slower pace. This combination of weak macro signals reinforces the view that Japan's economic recovery has been uneven.
The decline was led by several large stocks: Advantest (-1.3%), Sony Group (-3.4%), Fujikura (-1.3%), Keyence (-1.6%), and Sanrio (-2%). The lack of positive short-term catalysts means the market is likely to move cautiously, with the focus on global data and central bank policy guidance.
Source: Newsmaker.id