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Tokyo Stocks Retreat on Profit-Taking as Dow Slips and Nasdaq Extends Rally

Profit-taking after recent highs met rate-cut expectations that underpinned risk appetite ahead of next week’s Fed meeting.

Overview

  • The Nikkei fell 657.37 points to 50,371.05 at 9:15 a.m. local time and was down more than 800 points at one stage.
  • Selling hit chip heavyweights such as Tokyo Electron and Advantest, and Japan’s 10-year yield rose to about 1.950%, the highest since 2007, pressuring equities.
  • In New York, the Dow eased 31.96 points to 47,850.94, while the Nasdaq added 51.05 points to 23,505.14 for a third straight gain.
  • The dollar traded around the low ¥155 range (roughly ¥155.07–155.17) without clear direction as Fed cut hopes were offset by higher long-term U.S. yields.
  • Traders are focused on the upcoming FOMC, with expectations for additional Fed rate cuts helping limit the breadth of equity declines.