The Tokyo stock market closed lower on Wednesday, weighed down by sustained high crude oil prices and disappointing earnings from ASML Holding, a Dutch semiconductor equipment maker. This downturn overshadowed gains in major technology shares, which had been buoyed by recent declines.
The Nikkei 225 Stock Average saw a marginal decline of 33.23 points, or 0.05%, closing at 67,744.29, while the broader Topix index fell 13.89 points, or 0.34%, to 4,096.78. Significant losses were noted in banking, securities, and precision instrument stocks.
Market sentiment remained cautious amid ongoing concerns over energy supplies, with US West Texas Intermediate crude oil futures persisting above $90 per barrel. Geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict added further pressure on equities.
Despite these challenges, some investors turned to major technology stocks, mitigating overall market losses. The Nikkei had already experienced a drop of over 2,900 points across four consecutive trading sessions leading up to Tuesday.
Investors also approached the market with caution ahead of the anticipated release of US consumer price index data for September, which could potentially shape expectations regarding the Federal Reserve’s future monetary policy decisions.
In currency markets, the US dollar traded at approximately 158.34 yen in Tokyo. Meanwhile, Japan’s benchmark 10-year government bond yield slightly decreased to 2.995%, following steady demand observed at a five-year government bond auction.
The market initially showed upward movement but lost momentum after ASML’s quarterly earnings report failed to meet investor expectations, deepening concerns within the technology sector.