Tokyo’s stock market experienced a slight downturn on Wednesday, with the Nikkei 225 Stock Average dropping 33.23 points, or 0.05%, to close at 67,744.29. The broader Topix index also saw a decline, falling 13.89 points, or 0.34%, to 4,096.78. This decline was primarily driven by high crude oil prices and disappointing earnings from ASML Holding, a Dutch semiconductor equipment maker.
Investor sentiment was dampened by persistent high crude oil prices, with US West Texas Intermediate futures remaining above $90 per barrel. Concerns over energy supplies due to ongoing tensions in the Middle East and the Russia-Ukraine conflict further pressured the equities market. These factors contributed to a cautious atmosphere among investors, affecting sectors such as banking, securities, and precision instruments, which saw significant declines.
Despite these challenges, some investors turned to major technology stocks, which had previously declined, helping to limit overall market losses. The Nikkei index had already experienced a significant drop, shedding over 2,900 points across four consecutive trading sessions leading up to Tuesday.
Market participants also remained on edge as they awaited the release of the US consumer price index data for September, which could influence future expectations regarding the Federal Reserve’s monetary policy decisions.
The market initially showed signs of recovery but reversed course following ASML’s quarterly earnings report, which fell short of investor expectations. This development added to concerns surrounding the technology sector, further affecting the market’s performance.
In currency markets, the US dollar traded around 158.34 yen in Tokyo. Meanwhile, Japan’s benchmark 10-year government bond yield saw a slight decrease to 2.995%, following steady demand at a five-year government bond auction.