Japanese stocks closed lower on Wednesday, affected by rising crude oil prices and underwhelming earnings from Dutch semiconductor equipment maker ASML Holding. The Nikkei 225 Stock Average dipped 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, with significant declines seen in banking, securities, and precision instrument stocks.
Market sentiment was cautious as US West Texas Intermediate crude oil futures remained above $90 per barrel, raising concerns about energy supplies amid ongoing tensions in the Middle East and the Russia-Ukraine conflict. Despite these pressures, there was some buying activity in major technology shares following recent declines, which helped to mitigate the market’s overall losses. Notably, the Nikkei had already lost more than 2,900 points over the previous four trading sessions.
Investor caution also prevailed ahead of the upcoming release of the US consumer price index data for September, which could impact expectations regarding the Federal Reserve’s monetary policy. The market initially experienced some gains, but these were reversed after ASML’s quarterly earnings did not meet investor expectations, adding to worries about the technology sector.
Meanwhile, the US dollar traded around 158.34 yen in Tokyo. Japan’s benchmark 10-year government bond yield slightly decreased to 2.995% following steady demand at a five-year government bond auction.