Nikkei index declines as concerns over SoftBank's valuation outweigh positive news for Nintendo.

On Friday, the Japanese stock market weakened. Compared to Nintendo's solid earnings report, investors are more concerned about SoftBank's valuation pressure. The trading day following SoftBank's earnings report has seen four consecutive days of declines. Additionally, Lasertec's disappointing performance led to a significant drop of over 9% in its stock price during the morning session, which also contributed to negative market sentiment. The Nikkei index's upward momentum since last month's low appears to be weakening, currently falling below the 50% retracement level of the decline from June to July. This may lead trend-following funds to remain on the sidelines for some time.