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

Japanese shares slipped for a second straight session on Thursday, with the Nikkei 225 falling 0.9 per cent to close at 69,366.14, according to Business Recorder. The broader Topix was the weaker index, dropping 1.54 per cent to 4,090.19 as traders booked profits after a sharp earlier rally.

Strategist Hiroki Takei of Resona Holdings said profit-taking had picked up after a rapid run-up, and that selling pressure seemed likely to persist. Even though Samsung Electronics expects third-quarter operating profit to be almost nine times higher than last year, Japanese AI-linked stocks stayed subdued. Rohm declined 3.5 per cent, SoftBank Group shed close to 3 per cent and Yaskawa Electric dropped 2.6 per cent.

Concerns about US monetary policy stayed in focus after Federal Reserve minutes showed policymakers were divided over the September rate hike, with most members pointing to a further increase before the end of the year. The 10-year Treasury yield reached a 24-year high overnight before easing. Attacks on shipping in the Gulf and Strait of Hormuz also lifted crude prices, adding worry about Middle East oil supplies. Decliners outnumbered advancers 187 to 38 on the Nikkei 225.