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

Tokyo, Japan - The Nikkei share gauge in Japan saw a slight dip on Monday, as the tech sector weighed on the benchmark despite gains in energy-linked shares due to rising oil prices. The Nikkei 225 index fell by 0.43% to 62,425.47 in early trading, marking a third consecutive day of decline and potentially touching its lowest level since July 30. The broader Topix index, however, posted a gain of 0.48% to 3,984.74.

The US stock markets closed lower on Friday, but the S&P 500 energy sector managed a 2.5% rise, reaching a record high. Oil prices, however, retreated from a six-month peak on Monday after it was reported that Qatari mediators had visited Tehran to attempt de-escalation talks, alongside the United States, following relentless Houthi attacks on Saudi Arabia. These attacks had fueled supply concerns in the oil market.

Monex Securities senior analyst Satoshi Saito commented on the Nikkei's technical valuation, stating that the index might experience short-term rebounds, but a sluggish recovery is expected due to various ongoing issues. The breadth of the Nikkei showed positive sentiment, with 166 stocks gaining value, while only 59 declined. The largest losers in the index were Sumco, down 4.03%, Kokusai Electric, down 3.86%, and Screen Holdings, slipping 3.78%.

In contrast, Inpex saw the largest percentage gain at 4.92%, followed by JGC Holdings, up 4.56%, and Mitsubishi Corp, which rose 4.28%.