Stock Markets February 5, 2026

Tokyo shares retreat as Paper & Pulp, Transport and Communication sectors weigh on market

Nikkei 225 slips 0.73% as select financials and retailers hit multi-year highs amid broader sector weakness

By Sofia Navarro
Tokyo shares retreat as Paper & Pulp, Transport and Communication sectors weigh on market

Japan's equity benchmark closed lower on Thursday, dragged down by losses in Paper & Pulp, Transport and Communication sectors. The Nikkei 225 fell 0.73% as a mix of strong gains in select names contrasted with steep declines among major industrial and technology groups. Market breadth favored advancers, while volatility measures and key commodity and currency moves signaled modestly calmer option pricing and weaker oil and gold prices.

Key Points

  • Nikkei 225 closed down 0.73% with sector declines in Paper & Pulp, Transport and Communication weighing on the index.
  • Fukuoka Financial Group (TYO:8354) and J.Front Retailing (TYO:3086) hit all-time highs, while Panasonic (TYO:6752) reached a five-year high.
  • Major declines in Daikin (TYO:6367), SoftBank (TYO:9984) and NEC (TYO:6701) contrasted with broad advancing issues; market breadth favored winners 2,370 to 1,195 with 254 unchanged.

Summary

Tokyo's stock market ended the day in negative territory, with sector-level declines in Paper & Pulp, Transport and Communication applying downward pressure on the Nikkei 225. Despite broad participation among winners, notable selloffs in several large-cap names left the index down 0.73% at the close.


Market close and breadth

At the Tokyo close, the Nikkei 225 recorded a 0.73% decline. On the Tokyo Stock Exchange, advancing issues outnumbered decliners by 2,370 to 1,195, while 254 stocks finished unchanged, indicating that gains were concentrated in particular names even as headline performance was negative.

Top movers

  • Fukuoka Financial Group, Inc. (TYO:8354) was the session's strongest performer, climbing 10.27% - an increase of 622.00 points - to finish at 6,676.00. The share price reached an all-time high during the session.
  • J.Front Retailing Co., Ltd. (TYO:3086) gained 8.86%, adding 213.50 points to close at 2,623.50, also reaching an all-time high.
  • Panasonic Corp (TYO:6752) rose 8.41%, up 184.50 points, closing at 2,378.50; the stock attained a five-year high.

Largest decliners

  • Daikin Industries, Ltd. (TYO:6367) fell 7.43%, a drop of 1,440.00 points, to end at 17,935.00.
  • SoftBank Group Corp. (TYO:9984) declined 7.01%, losing 295.00 points to close at 3,912.00.
  • NEC Corp. (TYO:6701) was down 6.88%, a decrease of 325.00 points, to finish at 4,397.00.

Volatility, commodities and currencies

The Nikkei Volatility index, which measures implied volatility of Nikkei 225 options, ticked down 0.08% to 35.80, indicating a slight easing in options-implied uncertainty compared with the prior read.

In commodities, crude oil for March delivery dipped 1.90% - down $1.24 - to $63.90 a barrel. Brent oil for April delivery fell 1.91%, down $1.33, to $68.13 a barrel. April Gold Futures moved lower by 0.25% or $12.50, trading at $4,938.30 a troy ounce.

On currency markets, USD/JPY strengthened 0.20% to 157.01, while EUR/JPY rose 0.02% to 185.13. The US Dollar Index Futures was higher by 0.19% at 97.67.

Context and observation

Thursday's session presented a contrast between a handful of high-flying winners that reached multi-year or all-time highs and several heavyweight names that registered steep intraday losses. Sector weakness in Paper & Pulp, Transport and Communication coincided with the underperformance of several sizable industrial and technology stocks, contributing to the headline decline even as a significant number of issues advanced across the exchange.

Note: This report summarizes market moves, price changes and indicators as recorded at the close of trading in Tokyo.

Risks

  • Concentration risk: Gains were concentrated in a small set of stocks even though advancers outnumbered decliners, potentially leaving the index vulnerable if large winners reverse - this affects equity market stability.
  • Sector-specific weakness: Losses in Paper & Pulp, Transport and Communication sectors may signal near-term headwinds for companies operating in those industries.
  • Commodity and currency moves: Declines in oil and gold prices and currency fluctuations (USD/JPY and EUR/JPY) could influence corporate input costs and cross-border earnings for exporters and commodity-linked firms.

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