15.12.202500:42:35UTC+00Japanese Shares Fall on Weak Wall Street Cues

On Monday, the Nikkei 225 Index declined by 1.1% reaching approximately 50,300, effectively erasing the previous session's gains. This drop mirrored significant losses on Wall Street, prompted by growing concerns over the sustainability of investments in artificial intelligence. Domestically, data from the central bank revealed improved sentiment among large manufacturers, with the index rising to +15 in the fourth quarter from +14 in the third quarter, marking the highest level in four years. Investors remained cautious ahead of the upcoming Bank of Japan policy meeting, where a rate hike is anticipated. Market participants are also set to analyze Governor Kazuo Ueda's remarks post-meeting for insights into the policy direction for the forthcoming year. Technology and AI-centric stocks were particularly hit, with SoftBank Group declining by 5.7%, Kioxia Holdings by 7.6%, Advantest by 5.1%, Fujikura by 4.7%, and Disco Corp by 1.5%. Conversely, financial stocks performed well, buoyed by gains in Mitsubishi UFJ (1.3%), Sumitomo Mitsui (1.9%), and Mizuho Financial (2.3%).