Nikkei 225 heads for third decline as chip stocks slide

The Nikkei 225 fell 0.43% to 62,425.47 in morning trading on October 26, 2026, heading for a third consecutive session of losses as semiconductor-related shares weakened. The broader Topix rose 0.48% to 3,984.74, showing that the decline did not extend across the Japanese equity market.

Key Takeaways

• Chip-related shares dragged the Nikkei lower despite more constituents rising than falling.
• Energy and trading-company shares advanced after oil’s recent strength.
• The morning index levels were not closing results; the Nikkei was tracking its lowest close since July 30.

Table of Contents

• Nikkei 225 falls despite positive market breadth
• Chip losses contrast with energy-related gains
• Oil’s pullback leaves a mixed backdrop
• Conclusion

Nikkei 225 falls despite positive market breadth

The benchmark’s weakness followed a lower Wall Street session on Friday, October 23. Semiconductor-related stocks were among Japan’s biggest decliners, with Sumco, Kokusai Electric and Screen Holdings leading the losses.

The Nikkei 225 index methodology describes a price-weighted benchmark comprising 225 stocks from the Tokyo Stock Exchange’s Prime Market. That construction helps explain why the index’s direction can differ from the simple count of advancing and declining constituents.

In Monday’s morning trading, 166 Nikkei constituents rose and 59 fell. The combination of positive breadth and a falling benchmark highlighted the uneven nature of the selling rather than a market-wide retreat.

Chip losses contrast with energy-related gains

Sumco was the Nikkei’s largest percentage loser and was heading for its lowest close since April 2026. Energy producer Inpex, engineering group JGC Holdings and trading company Mitsubishi Corp moved in the opposite direction.

The split was also visible in the preceding US session: major stock indexes ended lower, while the S&P 500 energy sector gained 2.5% to a record high. Japan’s morning performance similarly separated technology weakness from strength in energy-related shares.

Oil’s pullback leaves a mixed backdrop

Oil prices retreated from a six-month high on Monday following reports that Qatari mediators had visited Tehran to seek de-escalation in coordination with the United States. Those diplomatic efforts followed intensified Houthi attacks on Saudi Arabia that had raised concerns about global oil supplies.

The timing matters: Japanese energy-related shares advanced even as crude eased that morning, following its earlier rise. Their gains should not be read as evidence that oil prices were continuing to climb during the same trading window.

Conclusion

The October 26 close will establish whether the Nikkei 225 records a third straight decline and its lowest finish since July 30. The morning snapshot showed concentrated chip-sector weakness alongside broader market gains.

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