The Nikkei 225 Index experienced a slight decline, ending a three-day rally due to concerns about technology stocks and AI investments. The market also reacted to US futures and speculation surrounding the next Federal Reserve chair. Caution was also evident ahead of a domestic snap election.
- The Nikkei 225 Index fell 0.1% to close at 53,323.
- Losses in technology stocks, such as Advantest, Lasertec, and Keyence, dragged down the market.
- Speculation about a hawkish candidate for Federal Reserve chair weighed on sentiment.
- A snap election scheduled for Feb. 8 contributed to market caution.
- Kioxia Holdings saw a surge in its stock price ahead of its earnings release.
- The Nikkei 225 posted losses for the second consecutive week, but still ended the month nearly 6% higher.
The slight decrease in the Nikkei suggests a temporary pause in its upward trend. The technology sector’s vulnerability due to worries about AI investment sustainability and a potential shift in US monetary policy present potential headwinds. However, strong performance by individual stocks, such as Kioxia, and the index’s overall monthly gain, indicate underlying strength. Short-term uncertainty related to the upcoming election also seems to be playing a role.