The Japanese stock market closed lower on Tuesday amid fluctuations, as chip-related stocks declined and rising oil prices dampened risk appetite, leading the Nikkei index to fall for the fourth consecutive trading day.
The Nikkei 225 index fell 0.1% to close at 53,700.39 points, while the TOPIX rose 0.45% to 3,627.07 points. During the session, the Nikkei index briefly rose by 1.2% but then gave up its gains.
Market sentiment was influenced by multiple factors. The brief retreat in oil prices overnight had boosted early trading, but oil prices rose again during the Asian session, weakening investors' risk appetite. Meanwhile, Nvidia's presentation did not provide any unexpectedly strong catalyst, putting pressure on the semiconductor sector.
In terms of individual stocks, semiconductor test equipment maker Advantest dropped 2.5%, making the largest drag on the index, while SoftBank Group fell 1.8%. Companies in the wire and electronic materials supply chain also generally weakened.
There was a noticeable sector divergence, with shipping and pharmaceutical stocks performing strongly. Kawasaki Kisen rose 6.3%, and Daiichi Sankyo went up 5.9%.
According to data from IwaiCosmo Securities, the Nikkei index has recently shown an inverse relationship with oil prices, with energy price fluctuations becoming the leading short-term market variable.
