Japanese Market Sharply Lower

(RTTNews) - The Japanese stock market is trading sharply lower on Tuesday, extending the losses in the previous three sessions, following the mixed cues from Wall Street overnight. The Nikkei 225 is falling below the 51,300 level, with weakness across most sectors led by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index is down 597.95 points or 1.15 percent at 51,287.90, after touching a high of 54,388.43 earlier. Japanese shares ended sharply lower on Monday.

Market heavyweight SoftBank Group is losing more than 2 percent and Uniqlo operator Fast Retailing is declining almost 4 percent. Among automakers, Honda is edging up 0.1 percent, while Toyota is edging down 0.2 percent.

In the tech space, Tokyo Electron is declining more than 4 percent, Screen Holdings is slipping more than 2 percent and Advantest is losing almost 4 percent.

In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are edging up 0.1 to 0.4 percent each, while Mizuho Financial is edging down 0.4 percent.

The major exporters are mixed. Mitsubishi Electric is losing more than 1 percent and Panasonic is down almost 1 percent each, while Canon is gaining more than 1 percent and Sony is adding almost 3 percent.

Among the other major losers, Fujikura and Resonac Holdings are plunging more than 7 percent each, while Sumco is tumbling almost 7 percent and Mitsui Kinzoku is sliding more than 6 percent. Sumitomo Electric Industries and Ibiden are declining almost 6 percent each, while IHI and Lasertec are slipping more than 5 percent each. Taiyo Yuden and Japan Steel Works are losing almost 5 percent each, while Mitsubishi Heavy Industries, Furukawa Electric and Sumitomo Metal Mining are down more than 4 percent each.

Conversely, SHIFT and Recruit Holdings are advancing almost 4 percent each, while BayCurrent and FUJIFILM are gaining more than 3 percent each. Omron is adding almost 3 percent.

In economic news, the unemployment rate in Japan came in at a seasonally adjusted 2.6 percent in February, the Ministry of Internal Affairs and Communications said on Tuesday. That was below expectations for 2.7 percent, which would have been unchanged from the January reading. The jobs/applicant ratio was 1.19 - beating forecasts for 1.18, which again would have been unchanged.

Meanwhile, overall consumer prices in the Tokyo region of Japan were up 1.4 percent on month in March, the Ministry of Economy, Trade and Industry or METI said on Tuesday. That was below forecasts for 1.5 percent and down from 1.6 percent in February. Core CPI was up 1.7 percent - again shy of expectations for 1.8 percent, which would have been unchanged from the previous month.

The METI also said industrial output in Japan was down a seasonally adjusted 2.1 percent on month in February. That missed forecasts for a decline of 2.0 percent following the 4.3 percent increase in January. On a yearly basis, industrial production was up 0.3 percent.

Upon the release of the data, the METI maintained its assessment of industrial production, saying that it continues to fluctuate indecisively. According to the METI's forecast, industrial production is expected to rise 3.8 percent in March and 3.3 percent in April.

Additionally, the METI said Retail sales in Japan fell 0.2 percent on year in February 2026, reversing a 1.8 percent growth in the previous month and missing market expectations for a 0.8 percent gain. On a monthly basis, retail trade declined 2.0 percent, reversing a downwardly revised 3.0 percent increase in January.

In the currency market, the U.S. dollar is trading in the higher 159-yen range on Tuesday.

On Wall Street, stocks showed a strong move to the upside in early trading on Monday but gave back ground over the course of the session. The major averages pulled back well off their highs of the session, with the Nasdaq and the S&P 500 ending the day in negative territory.

The Nasdaq slid 153.72 points or 0.7 percent to 20,794.64 and the S&P 500 fell 25.13 points or 0.4 percent to 6,343.72, dropping to their lowest closing levels in nearly eight months. The narrower Dow, on the other hand, inched up 49.50 points or 0.1 percent to 45,216.14 after briefly dipping into the red in the final hour of trading.

Meanwhile, the major European markets moved to the upside on the day. While the U.K.'s FTSE 100 Index shot up by 1.6 percent, the German DAX Index jumped by 1.2 percent and the French CAC 40 Index advanced by 0.9 percent.

Crude oil prices catapulted on Monday as the gulf region remains enveloped in war tension after the U.S. sends more soldiers to the area as Trump warned Iran to open the Strait of Hormuz. West Texas Intermediate crude for May delivery was up $3.05 or 3.06 percent at $102.69 per barrel.