Japanese stocks closed lower on Wednesday as the market grappled with high crude oil prices and lackluster earnings from ASML Holding, a Dutch semiconductor equipment maker. The Nikkei 225 Stock Average dropped 33.23 points, or 0.05%, settling at 67,744.29, while the broader Topix index decreased by 13.89 points, or 0.34%, to 4,096.78. Banking, securities, and precision instrument sectors were among the notable decliners.
Investor sentiment remained cautious amid persistent concerns over energy supplies, fueled by ongoing tensions in the Middle East and the Russia-Ukraine conflict. U.S. West Texas Intermediate crude oil futures maintained levels above $90 per barrel, adding pressure on equities.
Despite these challenges, there was some buying activity in major technology stocks, which had seen recent declines, helping to limit the market’s overall losses. The Nikkei had already experienced a substantial drop of over 2,900 points over four consecutive trading sessions leading up to Tuesday.
Market participants also exercised caution ahead of the awaited release of U.S. consumer price index data for September. This data could potentially influence expectations regarding the Federal Reserve’s future monetary policy decisions.
Additionally, the U.S. dollar traded around 158.34 yen in Tokyo, while Japan’s benchmark 10-year government bond yield edged down to 2.995% following steady demand at a five-year government bond auction.
The market opened on a positive note but reversed its gains after ASML’s quarterly earnings report did not meet investor expectations, exacerbating concerns within the technology sector.
