Japan's main stock index, the Nikkei 225, fell slightly on Tuesday, mainly because technology shares lost ground and SoftBank’s stock slipped.
Market snapshot
The Nikkei dropped 0.1% to 50,465 points by mid‑day, while the broader Topix index also slipped 0.1%.
Despite the dip, the Nikkei is still on track for a 26% gain this year – its best annual performance since 2023. The Topix is set for a 23% rise.
Why the dip?
Two factors weighed on the market:
- U.S. tech pullback: Wall Street’s major indices fell after tech stocks retreated from a recent rally that pushed the S&P 500 to record highs.
- SoftBank slide: SoftBank Group fell about 1% after announcing a $4 billion purchase of digital‑infrastructure firm DigitalBridge. The stock had surged 93% earlier this year.
Nomura Securities strategist Wataru Akiyama said the sell‑off looks like typical end‑of‑year adjusting rather than a loss of confidence in AI.
Top gainers and losers
- Gainers: Fujitsu rose 1.9% and Sumitomo Pharma gained 1.5%.
- Losers: Sumitomo Metal Mining dropped 3.6%, and online retailer Rakuten slipped 2.1%.
What this means for you
If you hold Japanese tech or SoftBank shares, expect a short‑term dip but remember the overall year‑to‑date upside is still strong. For new investors, the market’s modest pullback could be a chance to consider buying into a broadly rising index.
Disclaimer
Remember, this is my perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.