Stock Markets March 2, 2026

Tokyo Stocks Retreat as Paper, Transport and Communication Names Weigh on Market

Nikkei 225 slips 1.35% as select industrial and financial stocks lead losses; commodity and currency moves add to market backdrop

By Leila Farooq
Tokyo Stocks Retreat as Paper, Transport and Communication Names Weigh on Market

Japan's equity market closed lower on Monday as weakness in the Paper & Pulp, Transport and Communication sectors pushed the Nikkei 225 down 1.35%. A handful of industrial names posted strong gains, including Toppan Printing, Fujikura and Furukawa Electric, while major financial and airline-related stocks recorded steep declines. Market breadth was negative and volatility measures fell alongside notable moves in oil, gold and currency markets.

Key Points

  • Nikkei 225 closed down 1.35%, driven by losses in Paper & Pulp, Transport and Communication sectors.
  • Top gainers included Toppan Printing (TYO:7911), Fujikura (TYO:5803) and Furukawa Electric (TYO:5801); major decliners included Nomura Holdings (TYO:8604), Japan Airlines (TYO:9201) and Shizuoka Financial Group (TYO:5831).
  • Market breadth was negative with 2,764 decliners versus 903 advancers; volatility eased as the Nikkei Volatility index fell to 27.33, while oil, gold and currency markets saw significant moves.

Tokyo's stock market finished in negative territory on Monday, with selling pressure concentrated in several cyclical sectors. At the close, the Nikkei 225 index had lost 1.35%, weighed primarily by declines among Paper & Pulp, Transport and Communication companies.

The session's top performers on the Nikkei 225 included Toppan Printing Co., Ltd. (TYO:7911), which surged 8.54% or 458.00 points to finish at 5,823.00. Fujikura Ltd. (TYO:5803) advanced 6.20% or 1,660.00 points to close at 28,425.00, while Furukawa Electric Co., Ltd. (TYO:5801) climbed 6.12% or 1,720.00 points to end the day at 29,820.00.

On the downside, Nomura Holdings Inc (TYO:8604) led losses, falling 6.75% or 98.00 points to 1,354.50 at the close. Japan Airlines Co Ltd (TYO:9201) declined 5.89% or 190.00 points to finish at 3,038.00, and Shizuoka Financial Group Inc (TYO:5831) was down 5.85% or 184.00 points to 2,960.00.

Market breadth in Tokyo was decisively negative. Falling stocks outnumbered advancing ones by 2,764 to 903, while 165 issues ended unchanged. The session also featured several notable highs: shares of Toppan Printing Co., Ltd. (TYO:7911) and Fujikura Ltd. (TYO:5803) rose to all-time highs, with Toppan Printing up 8.54% to 5,823.00 and Fujikura gaining 6.20% to 28,425.00. Furukawa Electric Co., Ltd. (TYO:5801) reached 5-year highs as it climbed 6.12% to 29,820.00.

Volatility measures eased during the session. The Nikkei Volatility index, which tracks implied volatility on Nikkei 225 options, dropped 12.43% to 27.33.

Commodities and currency markets moved sharply, offering additional context to the equity action. Crude oil for April delivery rose 7.48% or 5.01 to $72.03 a barrel. Brent futures for May delivery increased 7.93% or 5.78 to $78.65 a barrel. Precious metals also climbed, with the April Gold Futures contract up 2.94% or 154.25 to trade at $5,402.15 a troy ounce.

Currency moves were notable ahead of the close in Tokyo. USD/JPY strengthened 0.53% to 156.89, while EUR/JPY slipped 0.15% to 184.09. The US Dollar Index Futures was higher by 0.66% at 98.21.


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Risks

  • Sector-specific weakness - Paper & Pulp, Transport and Communication names led the market lower, indicating concentrated downside risk for those sectors.
  • Commodity price volatility - Large daily gains in crude and Brent oil could add uncertainty for energy-exposed companies and broader market sentiment.
  • Currency and rate sensitivity - Movements in USD/JPY and the US Dollar Index Futures may affect exporters, importers and financial companies exposed to FX shifts.

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