Japanese stocks closed lower on Wednesday as high crude oil prices and weaker-than-expected earnings from ASML Holding weighed on the market. The Nikkei 225 Stock Average dropped 33.23 points, or 0.05%, to 67,744.29, while the broader Topix index fell 13.89 points, or 0.34%, to 4,096.78. Key sectors such as banking, securities, and precision instruments experienced significant declines.
Investor sentiment remained cautious amid ongoing concerns over energy supplies, as US West Texas Intermediate crude oil futures stayed above $90 per barrel. Geopolitical tensions in the Middle East and the Russia-Ukraine conflict further pressured equities. Despite these challenges, some investors found opportunities in technology stocks, whose recent declines prompted renewed buying interest, helping to limit overall market losses.
The market initially showed positive movement but reversed its gains after the Dutch semiconductor equipment maker ASML reported quarterly earnings that failed to meet market expectations, amplifying concerns within the technology sector. The Nikkei had already lost more than 2,900 points over four consecutive sessions leading up to Tuesday.
Market participants also remained cautious ahead of the upcoming release of US consumer price index data for September, which could influence expectations regarding the Federal Reserve’s monetary policy. Meanwhile, the US dollar hovered around 158.34 yen in Tokyo trading, and Japan’s benchmark 10-year government bond yield edged down to 2.995% following steady demand at a five-year government bond auction.
