Japan's Topix rises on lower oil prices, Nikkei weighed down by tech

TOKYO: Japan’s broad Topix gauge of shares climbed for a sixth straight day Monday as a decline in oil prices and positive momentum in global markets boosted investor sentiment.

The Topix gained 0.50% to 4,084.74, set for its longest winning streak since August 2025. The benchmark Nikkei 225, which is heavily weighted by tech shares, struggled for direction and was last down 0.16% to 69,630.74.

Investors kept a cautious eye on the outlook for central bank policy, with the Federal Reserve signalling a hawkish stance under Chair Kevin Warsh, while the Bank of Japan is expected to continue tightening.

Meanwhile, an increase in oil output targets and the reopening of the Strait of Hormuz provided some relief to markets.

While Wall Street was closed on Friday for a holiday, Japanese equities took cues from strong performance in European and South Korean markets, said Maki Sawada, an equities strategist at Nomura Securities.

“These factors, combined with the downward trend in crude prices following OPEC+’s decision over the weekend to increase production, seem to be supporting investor sentiment,” Sawada said.

“Fluctuations in these AI and semiconductor-related shares will continue to influence whether the Nikkei 225 rises or falls.”

Sector performance was mixed, with industrials and transportation-related shares leading gains.

Kawasaki Heavy Industries surged 7.62%, while Mitsubishi Heavy Industries rose 5.93%, marking a sixth straight session of gains, its longest such run since September 2025.

Precision instruments and information and communication sectors lagged, with Taiyo Yuden falling 6.98% and Socionext dropping 4.99%. Breadth was positive, with 169 advancers on the Nikkei 225 against 56 decliners.