Stock Markets February 17, 2026

Tokyo stocks slip at close as sector losses outweigh gains; Nikkei down 0.47%

Paper & Pulp, Transport and Communication sectors drag the market lower amid mixed individual stock moves

By Caleb Monroe
Tokyo stocks slip at close as sector losses outweigh gains; Nikkei down 0.47%

Japan's Nikkei 225 finished the trading day lower, down 0.47%, with sector-level declines in Paper & Pulp, Transport and Communication offsetting notable gains in select electronics and pharmaceutical names. Market breadth favored decliners, volatility eased, and commodity and currency moves showed modest shifts by the close.

Key Points

  • Nikkei 225 closed down 0.47%, with sector losses in Paper & Pulp, Transport and Communication driving the decline.
  • Top gainers included Taiyo Yuden (TYO:6976), Sumitomo Dainippon Pharma (TYO:4506) - which hit five-year highs - and Murata Mfg (TYO:6981) - which reached 52-week highs.
  • Market breadth favored decliners (1,966 losers vs. 1,655 advancers), while implied volatility on the Nikkei eased to 31.03.

Tokyo equities closed in negative territory on Tuesday, with the Nikkei 225 ending the session down 0.47% as losses in several key sectors weighed on the index.

Among individual movers, Taiyo Yuden Co., Ltd. (TYO:6976) led gains on the Nikkei 225, rising 8.71% - an increase of 356.00 points - to finish at 4,444.00. Sumitomo Dainippon Pharma Co Ltd (TYO:4506) also posted a strong advance, adding 7.19% or 213.50 points to close at 3,184.00. Murata Mfg Co (TYO:6981) climbed 6.88% or 226.00 points to end the day at 3,509.00.

On the downside, Japan Steel Works Ltd (TYO:5631) recorded the steepest drop among Nikkei components, falling 5.39% or 504.00 points to close at 8,852.00. SoftBank Group Corp. (TYO:9984) declined 5.10% or 239.00 points to finish at 4,449.00, while NEC Corp. (TYO:6701) gave up 4.67% or 196.00 points to end at 4,004.00.

Sector performance was mixed but leaned negative, with Paper & Pulp, Transport and Communication cited as leading factors in the market's downward direction. Market breadth on the Tokyo Stock Exchange showed more fallers than gainers; 1,966 stocks declined versus 1,655 that advanced, and 210 issues finished unchanged.

Notable price milestones were reached during the session. Shares of Sumitomo Dainippon Pharma climbed to five-year highs, closing at 3,184.00 after the 7.19% gain. Murata Manufacturing moved to a 52-week high, ending at 3,509.00 following its 6.88% rise.

Volatility and macro-related indicators moved lower by the close. The Nikkei Volatility index, which measures implied volatility for Nikkei 225 options, dropped 9.30% to 31.03.

Commodity markets saw modest declines. Crude oil for April delivery fell 0.57% or 0.36 to $63.20 a barrel. Brent oil for April delivery slipped 0.64% or 0.44 to $68.21 a barrel. The April Gold Futures contract dropped 1.71% or 85.95 to trade at $4,928.55 a troy ounce.

Currency moves were modest at the close. USD/JPY eased 0.31% to 152.95, while EUR/JPY fell 0.39% to 181.14. The US Dollar Index Futures was slightly higher, up 0.02% at 97.00.

Overall, the session produced a mix of sharp individual stock moves against a backdrop of sector-led weakness, with volatility declining and commodities and currencies showing small shifts by the close.

Risks

  • Broad sector declines in Paper & Pulp, Transport and Communication could sustain downward pressure on the Nikkei if the trend continues - this affects companies within those sectors.
  • Commodity price moves, including declines in crude and Brent oil, introduce uncertainty for energy-exposed segments and materials producers.
  • Movements in major currency pairs, such as USD/JPY and EUR/JPY, add near-term volatility for market participants sensitive to exchange rate shifts.

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