The Nikkei 225 Index fell 1.8% to around 49,428, hitting its lowest level since October 24, while the broader Topix Index shrank 1.2% to 3,306 on Tuesday morning, extending losses from the prior two sessions. The selloff tracked a weak Wall Street session overnight as investors grew cautious ahead of Nvidia’s quarterly results. Escalating Japan–China tensions also continued to pressure sentiment. Traders were further cautious ahead of a meeting between Japanese PM Sanae Takaichi and BoJ Governor Kazuo Ueda, as well as a separate meeting between Takaichi and the government’s tax commission this afternoon. Takaichi will launch talks this week on a wide-ranging tax overhaul aimed at supporting investment and household spending while seeking new revenue sources to maintain fiscal discipline, as the Nikkei reported. Most sectors traded in the red, led by IT stocks, with notable losses from Sumitomo Electric (-6.8%), Furukawa Electric (-6.5%), Fujikura (-6.3%), and SoftBank (-5.0%).