Japanese shares ended a two-day winning streak on Friday, October 2, 2026, as investors locked in profits following Thursday’s 3.3% surge, SoftBank Group fell, and hotter-than-expected Tokyo inflation continued to put pressure on the Bank of Japan. Despite this, the index still recorded a third consecutive weekly gain.
On October 2, 2026, what was the closing price of the Nikkei 225?
On Friday, October 2, 2026, the Nikkei 225 closed at 68,309.46, down 647.26 points, or 0.94%, from its close of 68,956.72 on Thursday. The index began the day at 68,313.46, rose to a peak of 68,741.49 just after 9:20 a.m., and then dropped to a low of 68,132.16 in the middle of the morning. It drifted for the remainder of the day after reopening the afternoon session lower.
The Nikkei increased 2.93% for the week, its third straight weekly gain, despite Friday’s dip. The index is currently 6.2% behind its peak of 72,831.73, which was reached on June 22, 2026, at 68,309.46.
Why Did Today’s Nikkei Fall?
The prevailing theme was profit-taking. The Nikkei reached its best closing since August 17 thanks to Thursday’s 3.30% increase, which was fueled by a semiconductor rally following Micron’s impressive earnings. Investors utilized Friday to lock in gains. Ahead of the US September jobs report, which is scheduled to be released after the Tokyo close, many also refrained from making new purchases; but, as the index got closer to 68,000, some support started to emerge.
The caution was increased by energy prices. Concerns that a possible escalation in the US-Iran confrontation could further impair Middle East supplies and rekindle inflation caused oil prices to rise during Asian hours. Since nearly all of Japan’s crude is imported, rising oil prices often have an impact on business profits and the trade balance.
What Impact Did Tokyo Inflation Have on Japanese Stocks?
In September, Tokyo’s core consumer price index—which does not include fresh food—rose 2.7% year over year, exceeding the 2.4% prediction. For the first time in nine months, inflation exceeded the Bank of Japan’s 2% objective, and it was the fastest increase since November 2025. The higher result supports predictions that the central bank will continue to raise interest rates because Tokyo data are thought to be a leading indication of national inflation. Following the release, the yen stabilized.
Increased domestic rates have two effects on the Nikkei: they boost bank profits, but they can also put pressure on exporters by making the yen stronger and negatively impact growth stocks by increasing discount rates.
What Were the Most Changing Nikkei Stocks?
SoftBank Group was one of the biggest negative contributors to the price-weighted index and led the falls, falling 5.83% after announcing that it had finished the third and final $10 billion tranche of a previously negotiated investment. Terumo, a manufacturer of medical devices, dropped 4.15%, while Nissan Motor lost 4.57%. Tokyo Electron saw a 3.82% decline, Fast Retailing saw a 1.5% decline, and Toyota saw a 1.8% decline.
Advantest, a manufacturer of chip-testing equipment, defied the trend with a gain of 2.71%, helped by the ongoing strength of demand for AI-related products. Mitsubishi UFJ slightly increased during the session, while Sumitomo Mitsui Financial and Mizuho eased.
What was the performance of the Tokyo market as a whole?
The weakness was widespread. SoftBank Group, Tokyo Electron, and Fast Retailing contributed the most points to the Nikkei’s decline, while the TOPIX index began the afternoon session lower. SoftBank Group, Toyo Engineering, Nissan Motor, Tokyo Electron, Rakuten Group, Orix, and Tokio Marine were among the Prime Market’s most actively traded stocks by value.
It is important to consider the retreat in the context of a successful run. Prior to Thursday’s 3.30% increase, the index recovered to 66,753.72 on September 30, its best finish since August 19. As the index got closer to the 68,000 mark, some resilience appeared, indicating that buyers are still prepared to intervene during declines.
Which Nikkei 225 Technical Levels Are Important?
Buying surfaced when the index got closer to the 68,000 level on Friday, and the session low was at 68,132.16. This level provides near-term support. The high of 68,741.49 on Friday and then 69,000 represent resistance. If that level were to rise, the record high of 72,831.73 from June 22 would once again be within reach. Another factor to keep an eye on is the yield on Japanese government bonds. The 10-year yield hit 3% in early September for the first time since 1996, and any additional increase might put pressure on equity prices.
A Snapshot of Global Markets
In its first session following National Day, Hong Kong’s Hang Seng dropped 2.6% to 23,972.29 while mainland China and India remained closed. The S&P 500 increased 0.73% and the Nasdaq Composite climbed 1.19%, reaching a record intraday high as Nvidia set an all-time high, after the US jobs report revealed only 29,000 new positions in September, well below the 84,000 projected. The DAX 40 in Europe increased by 1.17%.
Investor Takeaway: What Will Happen to the Nikkei Next?
Given that Friday’s poor US jobs data and the record Nasdaq session could benefit tech stocks when Tokyo reopens on Monday, the Nikkei’s decline appears more like consolidation following a successful week than a shift in trend. A rebound above 69,000 would bring the June record back into view, but the 68,000 region serves as short-term support. A resurgence of oil prices and additional indications that the Bank of Japan would tighten more quickly than the markets anticipate are the primary dangers.
Common Questions
On October 2, 2026, what was the Nikkei 225 closing level?
The Nikkei 225 fell 647.26 points, or 0.94%, to settle at 68,309.46.
What caused the decline in Japanese stocks on October 2, 2026?
SoftBank dropped 5.83%, oil prices increased, investors pocketed profits on Thursday’s 3.3% increase, and Tokyo core inflation exceeded projections.
What was the Nikkei’s weekly performance?
For the third week in a row, the Nikkei increased by 2.93%.
