SINGAPORE: Japanese shares fell slightly on Wednesday, reacting to a selloff in US technology heavyweights and uncertainty about trade tariffs, with the prospect of Fed interest rate cuts providing markets a floor.
Overnight, as the Nasdaq came further off last week’s record highs, the NYFANG index, which tracks 10 heavily traded tech names, fell 1.8%.
Meanwhile, in comments on Tuesday, Federal Reserve Chair Jerome Powell kept alive market expectations of a rate cut at the Fed’s upcoming July 29-30 meeting, prompting investors to slightly boost the possibility of a reduction.
At home, Japanese investors are keeping an eye on key upper house elections slated for July 20 and the prospect of a trade deal with the United States, which President Donald Trump has indicated might not happen by his July 9 deadline for higher tariffs.
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