Nikkei Retreats from Yesterday's Record High
Japanese stocks experienced a slight correction on Tuesday (May 26th) after the two benchmark indexes weakened from their record highs. The Nikkei 225 fell 0.25% to close at 64,996, while the Topix slipped 0.1% to 3,938, as investors locked in profits while assessing the latest developments in the Middle East.
Risk sentiment came under scrutiny after reports that the US military targeted a missile launch site and a ship suspected of attempting to lay mines in southern Iran. However, President Donald Trump said talks with Tehran were showing progress, leaving the market torn between two narratives: escalating risks versus the possibility of de-escalation.
Domestically, Bank of Japan Deputy Governor Ryozo Himino reiterated that the central bank remains committed to continuing interest rate hikes, but the timing and pace will depend heavily on the impact of the Middle East conflict on the Japanese economy and the inflation outlook. These comments keep expectations of tightening alive, but leave room for adjustments if geopolitical risks hurt growth or push up price pressures through energy channels.
On the stock exchange, technology and artificial intelligence-related stocks corrected after leading the rally in the previous session, with Kioxia Holdings falling 4.6%, Fujikura weakening 4%, and Advantest falling 6.1%. Meanwhile, SoftBank Group surged 10.9% and has gained more than 50% in the last four sessions, becoming a prominent supporter as the overall market tends to consolidate. (asd)
Source: Newsmaker.id
