The Nikkei 225 dropped 1.74% to close at 51,497 while the broader Topix slipped 0.65% to 3,310 on Tuesday, with both benchmarks retreating from record highs as weak global sentiment triggered profit-taking.
Disappointing US manufacturing data and uncertainty over the Federal Reserve’s policy outlook weighed on risk appetite, as Fed officials delivered mixed messages regarding a possible December move.
Meanwhile, US President Donald Trump sparked confusion after saying Nvidia’s most advanced chips would not be available outside the US. Domestically, investors awaited key economic data this week for guidance on the Bank of Japan’s policy path, with markets watching for signs of a potential December rate hike.
Tech and AI-related shares led the declines, with notable losses from SoftBank Group (-7%), Advantest (-5.9%), IBIDEN (-1.8%), Fujikura (-2.2%), and Hitachi (-1.8%).
AloJapan.com