Nikkei slides on US tech selloff and oil-driven rate fears
EWJ•Japan’s Nikkei 225 fell 2.05% to 63,984.45 in early trading, while the Topix slipped 1.22% to 4,016.34, as a US technology selloff and rising oil prices stoked inflation and interest-rate concerns.
1. Japanese shares fall
The Nikkei 225 fell 2.05% to 63,984.45 in early trading on Monday, and the broader Topix slipped 1.22% to 4,016.34. The decline followed Friday’s weak Wall Street session, weighed down by losses in AI- and chip-related stocks.
2. Oil fuels inflation concerns
Oil prices rose more than 3%, adding to inflation concerns and expectations of further monetary tightening by central banks. Bank of Japan Governor Kazuo Ueda said underlying inflation is “quite close” to the central bank’s 2% target, highlighting the importance of anchoring inflation around that level.
3. Mixed stock performance
There were 78 advancers and 147 decliners in the Nikkei 225. Taiyo Yuden fell 7.42%, Sumitomo Electric Ind. dropped 5.96% and Sumco lost 5.88%; Toho rose 3.64%, Baycurrent gained 2.80% and Aeon added 2.14%. Market analyst Yuta Okamoto wrote that buying in value and defensive stocks should underpin the market while chip-related stocks weigh on the index.
