Nikkei 225 Drops as Bank of Japan Reports Monetary Decline

The Nikkei 225 Index fell 733.54 points, or 1.15 percent, to 63,021.36 on Tuesday, August 4, 2026. The decline extended losses from the previous session, driven by significant drops in technology stocks and index heavyweights. SoftBank Group shares lost more than 4 percent, while Fast Retailing Co., Ltd. saw a decline of nearly 2 percent.

This downward trend in Japanese markets occurred despite positive gains on Wall Street, where the Nasdaq, S&P 500, and Dow all advanced. Adding to the economic pressure, the Bank of Japan reported that the monetary base fell 13.8 percent year-on-year in July to 554.925 trillion yen, a decline more severe than the expected 13.0 percent.

Global markets were further influenced by a drop in crude oil prices. This decline followed the decision by U.S. President Donald Trump to cancel a planned attack on Iran, which reduced investor concerns regarding potential supply disruptions.