Nikkei Closes Lower; Tech Stocks Under Pressure

The Nikkei 225 index closed 0.29% lower in Monday’s trading session (November 2), weighed down by weakness in the paper and pulp, transportation, and communications sectors. Market sentiment leaned negative, with decliners significantly outnumbering gainers on the Tokyo Stock Exchange.

Among the top performers, NGK Corporation surged 10.95%, followed by Lasertec, which rose 8.01%, and Sapporo Breweries, which climbed 7.72%. These gains helped to limit the overall decline of the index.

Conversely, Screen Holdings plummeted 18.96%, Kioxia Holdings fell 15.78%, and Alps Alpine dropped 10.96%. Alps Alpine shares even hit a 52-week low, reflecting intense selling pressure across several technology and manufacturing firms.

Market stress was also evident in the Nikkei Volatility Index, which spiked 31.09% to reach 33.82. On the Tokyo Stock Exchange, 2,490 stocks closed lower, while only 1,044 advanced and 205 remained unchanged—a clear indication of widespread negative sentiment.

In the global market, the USD/JPY pair strengthened to around 157.83, while the U.S. Dollar Index edged down to 101.68. Crude oil prices saw a sharp decline, whereas gold contracts rose to approximately US$3,916 per troy ounce. The interplay of global market volatility, fluctuations in the yen, and pressure on the technology sector may continue to influence the Nikkei’s direction in the near term.