Stock Markets February 20, 2026

Tokyo stocks retreat as Nikkei 225 falls 1.07% at Friday close

Paper & Pulp, Transport and Communication sectors weigh on the market while select exporters and industrials post gains

By Ajmal Hussain
Tokyo stocks retreat as Nikkei 225 falls 1.07% at Friday close

Tokyo’s Nikkei 225 slipped 1.07% at Friday’s close as losses concentrated in Paper & Pulp, Transport and Communication stocks outpaced gains. Mitsui Mining and Smelting, IHI Corp. and Sumitomo Electric Industries were among the session’s top advancers, while Sumitomo Dainippon Pharma, Olympus and Seven & i Holdings recorded the day’s steepest declines. Market breadth was negative and implied volatility rose.

Key Points

  • Nikkei 225 closed down 1.07% as declines in Paper & Pulp, Transport and Communication sectors dominated.
  • Top gainers included Mitsui Mining and Smelting (TYO:5706), IHI Corp. (TYO:7013) and Sumitomo Electric (TYO:5802); major decliners were Sumitomo Dainippon Pharma (TYO:4506), Olympus (TYO:7733) and Seven & i Holdings (TYO:3382).
  • Market breadth was negative with 2,665 decliners versus 949 advancers and implied volatility (Nikkei Volatility) rose to 29.07.

Tokyo equities closed lower on Friday, with the Nikkei 225 ending the session down 1.07% as selling pressure in the Paper & Pulp, Transport and Communication sectors outweighed pockets of strength elsewhere.

At the close, the Nikkei 225 was off 1.07%.

Leading gains on the index included Mitsui Mining and Smelting Co. (TYO:5706), which climbed 5.44% - a rise of 1,615.00 points - to finish at 31,290.00. IHI Corp. (TYO:7013) added 5.18%, or 216.00 points, closing at 4,384.00, and Sumitomo Electric Industries Ltd. (TYO:5802) rose 4.59%, a 428.00 point increase, to settle at 9,748.00.

Heaviest declines were recorded by Sumitomo Dainippon Pharma Co Ltd (TYO:4506), which plunged 15.60% or 457.50 points to close at 2,475.50. Olympus Corp. (TYO:7733) fell 4.39% (down 68.00 points) to 1,480.00, while Seven & i Holdings Co., Ltd. (TYO:3382) slipped 4.26% or 97.50 points to end at 2,191.00.

Market breadth was skewed toward decliners: on the Tokyo Stock Exchange, 2,665 issues fell, 949 advanced and 215 finished unchanged.

Notable milestones during the session included new all-time highs for Mitsui Mining and Smelting Co. (TYO:5706), which gained 5.44% to 31,290.00, and for Sumitomo Electric Industries Ltd. (TYO:5802), which rose 4.59% to 9,748.00. Conversely, shares of Olympus Corp. (TYO:7733) dropped to five-year lows, falling 4.39% to 1,480.00.

Volatility measures climbed: the Nikkei Volatility - which tracks implied volatility of Nikkei 225 options - increased 4.23% to 29.07.


Commodities and currency moves

In commodities trading, crude oil for April delivery rose 0.50% or 0.33 to $66.73 a barrel. Brent oil for April delivery also gained 0.50% or 0.36 to $72.02 a barrel. The April Gold Futures contract advanced 0.87% or 43.26 to trade at $5,040.66 a troy ounce.

On the currency front, USD/JPY was up 0.05% at 155.13 while EUR/JPY fell 0.05% to 182.40. The US Dollar Index Futures moved up 0.02% to 97.87.


What this session shows

Friday’s trading left the Nikkei lower on the day, with losses broad across the exchange and a modest rise in implied volatility. Select industrials and miners posted strong gains, including two names reaching all-time highs, while several consumer and healthcare-related names experienced pronounced weakness.

Risks

  • Broad market weakness indicated by the 2,665-to-949 ratio of falling to rising stocks could signal continued downward pressure on equities - this impacts broad equity and sector exposures such as Paper & Pulp, Transport and Communication.
  • A sharp individual decline such as the 15.60% drop in Sumitomo Dainippon Pharma (TYO:4506) highlights company-specific downside risk for healthcare-related holdings.
  • An uptick in implied volatility - Nikkei Volatility rising 4.23% to 29.07 - introduces greater uncertainty for derivatives and option strategies tied to the Nikkei 225.

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