21.08.202500:36:42UTC+00Japanese Shares Fall for 3rd Straight Session

The Nikkei 225 declined by 0.4% to just under 42,800, while the Topix decreased by 0.15% to 3,094 on Thursday, marking the third consecutive day of losses. This downward trend occurred as Japanese stocks echoed a tech-driven selloff experienced in the US markets. Concerns about inflated valuations and the durability of the AI-driven rally have placed pressure on major US tech companies, impacting global investor sentiment. Domestically, Japan's manufacturing sector continues to inch towards stability as of August, although growth in the services sector has diminished. There remains uncertainty regarding the timing and extent of further interest rate hikes by the Bank of Japan. However, the increase in government bond yields suggests growing pressure on the central bank to respond. Among notable stocks, Tokyo Electron fell by 2%, Daiichi Sankyo dropped 5.3%, and Toyota Motor decreased by 0.7%. Conversely, SoftBank Group experienced slight gains after a more than 10% decline over the previous two sessions, reflecting ongoing caution toward the tech industry.