Japanese stocks fell slightly after setting a new record the previous day, as investors began to take profits. The Nikkei 225 weakened around 0.3% to 50,383, while the Topix fell 0.5% to 3,308, dragged down by electronics and service sector stocks. After the euphoria surrounding the Nikkei breaking through 50,000 for the first time, market focus now shifts to the meeting between Prime Minister Sanae Takaichi and US President Donald Trump in Tokyo. The meeting is expected to discuss defense cooperation and possible Japanese investment in the US—two issues that could be new catalysts for the market if concrete results are achieved.

On the other hand, sentiment is under pressure from the Nidec Corp. case. The motor company is embroiled in accounting issues and will be subject to special scrutiny by the Tokyo Stock Exchange. In fact, Nidec is rumored to be removed from the benchmark index starting November 5, potentially putting additional pressure on the Nikkei index. However, market participants have not yet completely shifted into fear mode. Some investors still see buying opportunities ahead of earnings releases from technology companies like Advantest (a chip testing equipment player), plus hopes for Japan-US cooperation. So while there's been a correction, the mood remains "tug-of-war," not panic-stricken.

Source: Newsmaker.id