The Nikkei 225 struggled for direction on Monday and closed lower as heavyweight tech shares dragged, even as the broader Topix rose for a sixth straight day on falling oil prices. Chipmakers led the decline while industrial names surged.
Japan's Nikkei 225 slipped 0.38% to close at 69,479, a drop of 265 points, as the tech-heavy benchmark failed to hold direction on Monday. The broader Topix moved the other way, gaining 0.50% to 4,084.74 and setting up its longest winning streak since August 2025.
Tech drags while oil eases
Lower crude prices and firm momentum across global markets lifted overall sentiment, but the Nikkei's heavy tech weighting kept it stuck. Chipmakers took the hardest hits, with Taiyo Yuden falling 10.31% and Murata Manufacturing dropping 9.70% among the biggest losers.
Nomura Securities equities strategist Maki Sawada tied the mood to the outlook for AI and chip shares. According to Business Recorder: "Fluctuations in these AI and semiconductor-related shares will continue to influence" whether the Nikkei rises or falls.
Industrials lead the gainers
Industrial and transportation names carried the market's advancers. Kawasaki Heavy Industries surged 7.62%, and Mitsubishi Heavy Industries rose 5.93%, marking a sixth straight session of gains — its longest run since September 2025.
Breadth stayed positive despite the mixed close, with 169 advancers on the Nikkei 225 against 56 decliners.
Central banks in focus
Investors kept a cautious eye on policy. The Federal Reserve has signalled a hawkish stance on interest rate policy under Chair Kevin Warsh, while the Bank of Japan is expected to keep tightening, according to Business Recorder's report on the session. An increase in oil output targets and the reopening of the Strait of Hormuz provided some relief to markets.
Sources: Business Recorder, TradingView
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