Japanese stocks closed lower on Wednesday, as the market grappled with the dual pressures of high crude oil prices and disappointing earnings from Dutch semiconductor equipment maker ASML Holding. The Nikkei 225 Stock Average shed 33.23 points, or 0.05%, concluding at 67,744.29, while the broader Topix index fell 13.89 points, or 0.34%, ending at 4,096.78. This downturn was led by declines in banking, securities, and precision instrument stocks.
Investor sentiment was cautious amid sustained high crude oil prices, with US West Texas Intermediate futures remaining above $90 per barrel. Geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict further fueled concerns over energy supply disruptions, impacting equity markets.
Despite the overall decline, there was some buying interest in major technology stocks, which helped to cushion the market’s losses. This comes after the Nikkei had already lost over 2,900 points during four consecutive trading sessions leading up to Tuesday.
Adding to the cautious mood, investors were on edge ahead of the US consumer price index data release for September, which could affect expectations regarding the Federal Reserve’s future monetary policy decisions.
The market initially showed signs of recovery, but gains were reversed after ASML’s quarterly earnings results fell short of investor expectations, exacerbating concerns about the technology sector.
Elsewhere, the US dollar was trading around 158.34 yen in Tokyo, and Japan’s benchmark 10-year government bond yield edged down to 2.995% following steady demand at a five-year government bond auction.