Japan's Nikkei edges lower as tech sector weighs, energy shares rise

TOKYO, Oct 26 : Japan's Nikkei share gauge edged lower on Monday as chip-related shares fell after a weaker Wall Street session, while energy-linked shares gained on higher oil prices.

The benchmark Nikkei 225 slid 0.43 per cent to 62,425.47 in morning trade, down for a third straight session and poised for its lowest close since July 30. The broader Topix gained 0.48 per cent to 3,984.74.

US share gauges ended lower on Friday, but the S&P 500 energy sector rose 2.5 per cent to a record. Oil prices slid from a six-month high on Monday after reports that Qatari mediators visited Tehran to seek de-escalation in coordination with the United States, following intensified Houthi attacks on Saudi Arabia that had stoked supply concerns. 

"The Nikkei Stock Average is showing signs of short-term technical undervaluation," Monex Securities senior analyst Satoshi Saito said in a note. "Stocks may see phases of short-term rebound, but with several concerns in the background, the recovery may remain sluggish for now."

Breadth was largely positive on the Nikkei, but the heavy weighting of tech shares dragged it lower. The gauge had 166 gainers and just 59 decliners.

The largest losers were Sumco, down 4.03 per cent and on track for its lowest close since April 2026, followed by Kokusai Electric, down 3.86 per cent, and Screen Holdings, down 3.78 per cent.

The largest percentage gainers in the index were Inpex, up 4.92 per cent, followed by JGC Holdings, up 4.56 per cent, and Mitsubishi Corp, which gained 4.28 per cent.