Japan shares extend losses as rate uncertainty, geopolitical woes curb appetite

Seven & i Holdings

08/10/2026 03:25

TOKYO, Oct 8 (Reuters) - Japanese shares fell roughly 1% on Thursday, down for a second consecutive session, as investors paused after recent rallies, wary of the US rate outlook and geopolitical tensions.
The Nikkei 225 Index .N225 fell 0.9% to 69,366.14, while the broader Topix .TOPX slid 1.54% to 4,090.19.
"Japanese shares had risen at a rapid pace through yesterday, and profit-taking has since picked up. That selling pressure appears to be continuing today," said Hiroki Takei, strategist, Resona Holdings.
Japanese AI-related shares were subdued even after Samsung Electronics 005930.KS, the world's largest memory chipmaker, projected a nearly ninefold jump in third-quarter operating profit from a year earlier.
Shares of chipmaker Rohm 6963.T lost 3.5%, while technology investor SoftBank Group 9984.T shed nearly 3% and Yaskawa Electric 6506.T fell 2.6%.
Concerns over US monetary policy remained in focus after Federal Reserve minutes released on Wednesday showed divisions among policymakers over the rationale for the September rate hike, with most participants signalling another increase by year-end. The 10-year Treasury yield hit a 24-year high overnight before paring gains.
Geopolitical tensions also dampened risk appetite, as increased attacks on shipping in the Gulf and the Strait of Hormuz fuelled concerns over Middle East oil supplies and pushed crude prices higher.
Breadth was negative, with 187 decliners in the Nikkei 225 against 38 advancers.
The largest percentage losers in the Nikkei were agricultural machinery and equipment maker Kubota Corporation 6326.T, down 7.42%, followed by construction machinery maker Komatsu 6301.T, which fell 7.2%, and machine tools maker Okuma 6103.T, down 4.67%. 
The largest percentage gainers were cybersecurity software company Trend Micro 4704.T, up 5.79%, followed by chipmaker Kioxia 285A.T, which rose 3.27%, and chip equipment maker Screen Holdings 7735.T, up 2.58%.
Two major retailers Uniqlo operator Fast Retailing 9983.T and convenience store chain Seven & i Holdings 3382.T are due to report their earnings after the bell.


 (Reporting by Satoshi Sugiyama; Editing by Sherry Jacob-Phillips)
 ((Satoshi.Sugiyama@thomsonreuters.com;))