Japan’s Nikkei 225 Index experienced a decline of up to 2.3% before rebounding to finish 0.34% lower at 62,693 on Friday, as the selling pressure in technology and artificial intelligence stocks started to diminish. Despite the late-session recovery, the benchmark index declined 4% for the week, marking its second consecutive weekly loss as investors shifted away from high-performing tech and AI shares toward safer assets, including government bonds.
When reports indicated that the United States and Israel had established preparations for probable further strikes against Iran following the midterm elections that will take place the following month, market sentiment was lowered. This was due to the fact that rising tensions in the Middle East.
Several major index constituents experienced downward pressure, including Taiyo Yuden, which fell by 3.9%, Disko Corp with a decline of 3.8%, Mitsubishi UFJ decreasing by 2.3%, Hitachi dropping by 4.4%, and Nintendo, which saw a reduction of 1.8%. Meanwhile, Japan’s inflation accelerated in September, surpassing the Bank of Japan’s 2% target and bolstering expectations for an additional interest rate hike this year.
