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Nikkei Slumps on Tech Sell-Off, Labor Worries

WSJ.com: Markets •
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Japanese equities face downward pressure as U.S. tech stock declines continue. The Nikkei index is vulnerable to broader market sentiment following heavy selling in American growth names. Tokyo markets opened lower, tracking overnight losses across the Pacific.

Weakness in the U.S. labor market has heightened concerns about economic stability. Investor confidence eroded after key technology companies reported disappointing earnings. Asian markets typically mirror U.S. trends, especially during periods of heightened volatility.

Market watchers expect continued uncertainty unless employment data improves. Traders are closely monitoring Federal Reserve policy signals. Any indication of prolonged monetary tightening could trigger further declines across global equity benchmarks, particularly in export-heavy Japan.