Nikkei falls 2.05% as tech losses and oil surge hit sentiment

Japan’s Nikkei 225 fell 2.05% to 63,984.45 in early trading on Monday, October 19, as losses in US technology shares and a surge in oil prices unsettled investors. The broader Topix declined 1.22% to 4,016.34, according to Economic Times Markets, citing Reuters.

The decline followed Friday’s Wall Street selloff, where artificial intelligence-related and semiconductor stocks led losses. Chip-related shares also weighed on Japanese equities, while an oil price increase of more than 3% intensified concerns about inflation and the possibility of higher interest rates.

BOJ comments keep inflation in focus

Bank of Japan Governor Kazuo Ueda said on Monday that underlying inflation was quite close to the central bank’s 2% target and stressed the importance of keeping it anchored around that level, the report said.

Higher energy costs added to worries that central banks could retain restrictive monetary policy or raise rates further. That prospect is particularly challenging for growth-oriented technology shares, which are sensitive to borrowing costs. Ueda’s comments were not a reported announcement of a rate change.

Decliners dominate, but some shares gain

Across the Nikkei’s 225 constituents, 147 stocks fell and 78 rose, with none unchanged. Taiyo Yuden recorded the largest percentage loss, dropping 7.42%. Sumitomo Electric Industries fell 5.96%, while Sumco lost 5.88%.

Toho led the gainers with a 3.64% rise, followed by Baycurrent at 2.80% and Aeon at 2.14%. Yuta Okamoto, a market analyst at Tokai Tokyo Intelligence Laboratory, said in a note that buying in value and defensive shares could cushion broader losses even as chip stocks dragged on the benchmark.

The figures reflect a source-reported early-trading snapshot, not closing prices or a live market feed.