Japanese Shares Fall on Market Caution
Japanese shares fell as the Nikkei 225 Index dropped 1.2% and the Topix Index fell 1% amid market caution ahead of a US inflation report. Rising global bond yields and potential rate hikes by the Bank of Japan pressured equities. Notable losses included Advantest, Fanuc, Fujikura, Tokyo Electron, and Toyota Motor. Mitsubishi UFJ plans to partner with Morgan Stanley in asset management.
The Nikkei 225 Index dropped 1.2% to below 50,500, while the broader Topix Index fell 1% to 3,365 on Friday, trimming gains from the previous session as investors grew cautious ahead of a key US inflation report that could influence Federal Reserve policy.
US stocks stalled overnight after jobs data showed resilience in the US labor market, slightly reducing expectations for a Fed rate cut next week.
Rising global bond yields also pressured equities, with the Bank of Japan signaling a potential rate hike later this month.
Notable losses came from heavyweight firms including Advantest (-2.5%), Fanuc (-0.9%), Fujikura (-0.3%), Tokyo Electron (-2.3%) and Toyota Motor (-2%).
In corporate news, Mitsubishi UFJ announced plans to partner with Morgan Stanley in asset management, building on 17 years of collaboration.
