Nikkei slips for third session as chip stocks drag

The Japanese Nikkei stock average edged lower on Monday, pressured by a sell-off in semiconductor shares following losses on Wall Street. Conversely, energy sector equities gained ground, buoyed by rising crude oil prices.

In morning trading, the benchmark index dropped 0.43% to reach 62425.47 points. This decline marks the third consecutive session of losses and positions the index for its lowest closing level since July 30.

Sector performance divergence

Meanwhile, the broader Topix index advanced 0.48%, climbing to 3984.74 points. US equity benchmarks had closed lower last Friday; however, the energy sector within the S&P 500 rose 2.5% to hit a record high.

Data released Friday indicated that Japan’s core consumer inflation rate exceeded the central bank’s 2% target in September for the first time in nine months. This development signals widening price pressures, potentially strengthening the case for near-term interest rate hikes.

Analyst outlook and key movers

Satoshi Saito, chief analyst at Monex Securities, noted that while short-term rebounds in equities are possible, several underlying concerns may keep recovery sluggish for now.

Within the Nikkei, Samco led decliners with a 4.03% drop. Kokusai Electric followed with a 3.8% fall, and Screen Holdings slipped 3.78%. On the winning side, Inpex posted the largest percentage gain, rising 4.92%. JGC Holdings climbed 4.56%, while Mitsubishi Corp increased by 4.28%.