Stock Markets February 4, 2026

Tokyo shares close lower as sector losses weigh; Nikkei 225 slips 0.63%

Paper & Pulp, Transport and Communication sectors lead declines while select industrial names jump; volatility and commodity moves register modest shifts

By Avery Klein
Tokyo shares close lower as sector losses weigh; Nikkei 225 slips 0.63%

Japan's stock market closed lower on Wednesday with sector weakness in Paper & Pulp, Transport and Communication dragging the broader market down. The Nikkei 225 fell 0.63% to a new all time high level, while mixed company performances saw large gains in industrial names and sharp declines among several major firms. Trading breadth favored advancers over decliners, and shifts in commodities and currency markets were modest.

Key Points

  • Nikkei 225 closed down 0.63% to a new all time high level, with sector weakness in Paper & Pulp, Transport and Communication weighing on the market.
  • Top gainers included NSK Ltd. (TYO:6471) up 9.21%, Hino Motors (TYO:7205) up 8.02%, and Sumitomo Chemical (TYO:4005) up 7.96%; major decliners included NEC (TYO:6701) down 11.79%, Nintendo (TYO:7974) down 10.98%, and Recruit (TYO:6098) down 10.10%.
  • Market breadth favored rising issues (2,190 advancers vs. 1,399 decliners) while Nikkei volatility and commodity and currency markets saw modest moves.

Tokyo equities ended the trading day in the red on Wednesday, driven by losses in the Paper & Pulp, Transport and Communication sectors that pushed overall share prices lower.

At the close in Tokyo the Nikkei 225 lost 0.63% to reach a new all time high level. Market breadth showed more winners than losers on the day as 2,190 stocks advanced versus 1,399 that fell, and 233 names finished unchanged on the Tokyo Stock Exchange.

The session's top performers on the Nikkei 225 included NSK Ltd. (TYO:6471), which climbed 9.21% or 102.00 points to finish at 1,210.00. Hino Motors, Ltd. (TYO:7205) also posted strong gains, adding 8.02% or 36.00 points to close at 485.00, while Sumitomo Chemical Co., Ltd. (TYO:4005) rose 7.96% or 40.30 points to end the day at 546.80.

On the downside, NEC Corp. (TYO:6701) tumbled 11.79% or 631.00 points to trade at 4,722.00 at the close. Nintendo Co Ltd (TYO:7974) declined 10.98% or 1,107.00 points to finish at 8,973.00, and Recruit Holdings Co Ltd (TYO:6098) fell 10.10% or 843.00 points to 7,501.00.

Notable price milestones were recorded during the session. Shares of NSK Ltd. rose to 5-year highs with the 9.21% gain to 1,210.00. Sumitomo Chemical's shares advanced to 3-year highs after the 7.96% rise to 546.80. Conversely, Nintendo shares dropped to 52-week lows when they closed down 10.98% at 8,973.00.

Implied volatility for the Nikkei 225 eased modestly, with the Nikkei Volatility index down 1.35% to 35.83.

Commodity markets saw varied movement. Crude oil for March delivery increased 0.87% or 0.55 to $63.76 a barrel. Brent oil for April delivery rose 0.71% or 0.48 to $67.81 a barrel. In precious metals, the April Gold Futures contract gained 3.31% or 163.11 to trade at $5,098.11 a troy ounce.

Currency pairs showed modest strength in the yen crosses. USD/JPY rose 0.39% to 156.35, while EUR/JPY increased 0.46% to 184.96. The US Dollar Index Futures was slightly lower, down 0.07% at 97.23.


Session summary

  • Overall market closed lower with the Nikkei 225 down 0.63% to a new all time high level.
  • Advancers outnumbered decliners on the Tokyo Stock Exchange: 2,190 up, 1,399 down, 233 unchanged.
  • Individual stock moves were pronounced, with multi-digit percentage gains and declines among major names.

Risks

  • Sector-specific weakness - Paper & Pulp, Transport and Communication sectors fell and were cited as drivers of the market decline, posing downside risk to stocks concentrated in those sectors.
  • Company-specific volatility - Several large-cap names experienced sharp losses (NEC, Nintendo, Recruit), indicating heightened idiosyncratic risk within the market.
  • External market influences - Movements in commodities (crude, Brent, gold) and FX pairs (USD/JPY, EUR/JPY) registered changes that could affect sector performance and investor sentiment.

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