TOKYO (dpa-AFX) - The Japanese market is significantly lower on Friday, reversing some of the gains in the previous two sessions, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling below the 56,900 level, with weakness across most sectors led by financial and technology stocks.
The benchmark Nikkei 225 Index is down 601.52 points or 1.05 percent to 56,866.31, after hitting a low of 56,732.05 earlier. Japanese shares ended notably higher on Thursday.
Market heavyweight SoftBank Group is losing almost 3 percent, while Uniqlo operator Fast Retailing is flat. Among automakers, Toyota is losing almost 4 percent, while Honda is declining almost 2 percent.
In the tech space, Advantest is losing almost 2 percent, Screen Holdings is down almost 1 percent and Tokyo Electron is declining more than 3 percent.
In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are losing more than 2 percent each, while Mizuho Financial is declining almost 2 percent.
Among the major exporters, Sony is declining almost 3 percent and Panasonic is losing more than 1 percent, while Mitsubishi Electric and Canon are edging down 0.3 percent each.
Among other major losers, Sumitomo Pharma is tumbling more than 12 percent, while Central Japan Railway and Yamaha Motor are declining more than 4 percent each. Chubu Electric Power, Trend Micro, Nomura Holdings and Kanadevia are losing almost 4 percent each, while Suzuki Motor, Isuzu Motors, ANA Holdings, Teijin and Mazda Motor are down more than 3 percent each.
Conversely, Mitsui Kinzoku is jumping almost 6 percent, IHI is surging more than 5 percent Sumitomo Electric Industries is advancing more than 4 percent and Japan Steel Works is adding more than 3 percent, while Kawasaki Heavy Industries, Keyence and Chugai Pharmaceutical are gaining almost 3 percent each.
In economic news, Japan's annual inflation eased to 1.5 percent in January 2026 from 2.1 percent in the prior month, the lowest since March 2022. Core consumer price index, which excludes fresh food but includes energy, rose 2 percent year-on-year in January 2026, cooling from 2.4 percent in December and marked the weakest pace of growth in two years. The reading was in line with market expectations and aligned with the inflation target of the Bank of Japan.
Meanwhile, the latest survey from Jibun Bank revealed that the manufacturing sector in Japan continued to expand in February, and at a faster pace, with a manufacturing PMI score of 52.8. That's up from 51.5 in January and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services PMI ticked up to 53.8 from 53.7 and the composite PMI climbed to 53.8 from 53.1.
In the currency market, the U.S. dollar is trading in the lower 155 yen-range on Friday.
On Wall Street, stocks moved mostly lower during trading on Thursday, giving back ground after turning in a strong performance in the previous session. The major averages all moved to the downside, although selling pressure was somewhat subdued.
The major averages finished the day off their lows of the session but still in negative territory. The Dow slid 267.50 points or 0.5 percent to 49,395.16, the Nasdaq fell 70.91 points or 0.3 percent to 22,682.73 and the S&P 500 dipped 19.42 points or 0.3 percent to 6,861.89.
The major European markets all also moved to the downside on the day. While the German DAX Index slid by 0.9 percent, the U.K.'s FTSE 100 Index declined by 0.6 percent and the French CAC 40 Index fell by 0.4 percent.
Crude oil prices jumped again on Thursday amid concerns about a military conflict between the U.S. and Iran, with reports suggesting American military intervention may be imminent. West Texas Intermediate for March delivery was up $1.25 or 1.9 percent to $66.44 a barrel.
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