<div id="readability-page-1"><div>The Nikkei 225 Index fell 1.1% to around 50,300 on Monday, reversing gains from the previous session and tracking sharp losses on Wall Street amid rising concerns over the sustainability of the artificial intelligence trade.On the domestic front, central bank data showed sentiment among large manufacturers improved to +15 in Q4 from +14 in Q3, the highest reading in four years.Investors remained cautious ahead of the Bank of Japan’s policy meeting this week, where a rate hike is widely expected.Markets will also scrutinize Governor Kazuo Ueda’s post-meeting remarks for guidance on the policy outlook for next year.Technology and AI-related stocks led the decline, with notable losses in SoftBank Group (5.7%), Kioxia Holdings (7.6%), Advantest (5.1%), Fujikura (4.7%), and Disco Corp (1.5%).In contrast, financial stocks outperformed, supported by gains in Mitsubishi UFJ (1.3%), Sumitomo Mitsui (1.9%), and Mizuho Financial (2.3%).</div></div>

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Japanese shares, represented by the Nikkei 225 Index, fell 1.1% to around 50,300, influenced by Wall Street's losses and AI trade concerns. Technology and AI stocks like SoftBank and Kioxia saw significant declines, while financial stocks like Mitsubishi UFJ and Mizuho Financial outperformed. Investors are cautious ahead of the Bank of Japan's policy meeting, where a rate hike is expected.

Japanese Shares Fall on Weak Wall Street Cues