The Japanese stock market closed lower on Friday, with the Nikkei 225 index falling 2.30%. The paper & pulp, transportation, and communications sectors were the main drags on the index. Despite the steep decline, the market mood wasn't entirely negative, as several large stocks still rallied.

Among the top gainers, M3 Inc rose 6.9%, Obayashi Corp surged nearly 5% to hit an all-time high of 3,125, and Nitori Holdings rallied around 4.1%. Overall, the number of stocks rising was far greater: 2,522 rose, 1,117 fell, and 190 remained unchanged on the Tokyo Stock Exchange. This means that the main pressure on the index came more from the sharp declines of a few large stocks, rather than from the overall market.

On the other hand, three major stocks that weighed heavily on the Nikkei were Mitsui Mining and Smelting, which fell 12.28%, Advantest, which fell 12.10%, and SoftBank Group, which plummeted 10.90%. Interestingly, the Nikkei volatility index actually fell 18.41% to 29.83, indicating that market participants did not view this turmoil as a major panic, but rather as a sharp correction in several major names.

In terms of commodities and exchange rates, oil prices also weakened: WTI crude for January delivery fell 1.51% to $58.11 per barrel, and Brent for January delivery fell 1.37% to $62.51 per barrel. December gold futures also fell 0.78% to around $4,028 per troy ounce. In the forex market, USD/JPY fell slightly to 157.12 and EUR/JPY weakened to 181.35, while US Dollar Index futures were nearly flat at around 100.04, reflecting a cautious global market sentiment. (asd)

Source: Newsmaker.id