Japanese stocks ended the day lower on Wednesday, weighed down by high crude oil prices and disappointing earnings reports from Dutch semiconductor equipment maker ASML Holding. The Nikkei 225 Stock Average dropped 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. Among the sectors that saw significant declines were banking, securities, and precision instruments.
Market participants remained cautious as US West Texas Intermediate crude oil futures remained above $90 per barrel, with ongoing tensions in the Middle East and the Russia-Ukraine conflict adding to energy supply concerns. Despite these pressures, there was notable buying in major technology stocks following a period of declines, which helped to mitigate the overall market losses. The Nikkei index had previously lost over 2,900 points during four consecutive trading sessions leading up to Tuesday.
Investor caution was also heightened ahead of the anticipated release of the US consumer price index data for September, which could potentially influence future monetary policy decisions by the Federal Reserve. Additionally, trading in currency markets saw the US dollar trading around 158.34 yen in Tokyo.
Japan’s benchmark 10-year government bond yield experienced a slight decline to 2.995%, following stable demand observed at a five-year government bond auction. Initially, the stock market showed signs of recovery, but these gains were reversed after ASML’s quarterly earnings report did not meet investor expectations, raising further concerns about the technology sector.