Falling oil prices boosted the Topix share price index; the Nikkei index was dragged down by technology stocks and ended basically flat
Japan's Topix rose for a sixth straight session on Monday as falling oil prices and strong performance in global markets boosted investor sentiment. The Topix stock index closed up 0.50% at 4,084.74 points, setting a record for the longest consecutive rise since August 2025. The trend of the Nikkei Index, which is heavily weighted in technology stocks, lacked a clear direction and ended basically flat at 69,737.69 points. Investors continue to pay careful attention to the policy outlook of central banks. The Federal Reserve, under the leadership of Chairman Warsh, has released a hawkish signal, while the Bank of Japan is expected to continue to tighten monetary policy. At the same time, increased crude oil production targets and the reopening of the Strait of Hormuz eased market concerns. The yen has resumed its depreciation trend, making traders wary of possible intervention by Tokyo authorities in the currency market. Meanwhile, Japanese government bonds fell sharply, with the benchmark 10-year bond yield rising to its highest level since October 1996. Maki Sawada, equity strategist at Nomura Securities, said that Wall Street was closed for a holiday last Friday, but Japanese stocks were boosted by strong performance in Europe and other overseas markets. "These factors, coupled with the downward trend in crude oil prices last weekend after OPEC+ decided to increase production, appear to be boosting investor sentiment," Sawada said. "The volatility of these artificial intelligence and semiconductor-related stocks will continue to affect the rise and fall of the Nikkei." Shipping, automobile and machinery sectors led the market higher, rose 3.36%, and Mitsubishi Heavy Industries rose 8.39%. Technology industry suppliers led the decline. The biggest decliner was Taiyo Yuden, down 10.58%; followed by Ibiden, down 8.37%; Murata Manufacturing Co., Ltd. fell 7.49%. Among the 225 constituent stocks in the Nikkei Index, 177 were up and 48 were down.