The Nikkei 225 Index dropped 1.3% to below 48,700 while the broader Topix Index fell 0.6% to 3,245 on Thursday, with Japanese shares retreating from record highs and tracking sharp losses on Wall Street overnight. US stocks fell sharply following reports that the White House may restrict exports to China involving US software. President Donald Trump later said his meeting with Chinese President Xi Jinping is “scheduled,” easing some tension over US-China ties. In Japan, investors weighed the policy outlook amid speculation that new Prime Minister Sanae Takaichi is preparing a major stimulus package exceeding last year’s 13.9 trillion yen. SoftBank Group led losses, plunging 4% after unveiling plans to issue US dollar- and euro-denominated bonds to finance AI investments. Other notable decliners included Advantest (-3.3%), Lasertec (-4.5%) and Disco Corp (-4.9%).