The Nikkei Stock Average edged slightly lower on the Tokyo stock market on July 6. The index closed at 69,737.69, down 6.38 points, or 0.01%, from the previous trading day. It fell by more than 820 points at one stage during the morning session but pared losses in the afternoon. Meanwhile, the Tokyo Stock Price Index (TOPIX) hit a record high, with advancing issues on the Prime Market accounting for more than 70% of the total, indicating broad-based buying.

With U.S. markets closed on July 3 for the Independence Day holiday, the Nikkei opened higher amid a lack of fresh trading cues. It briefly topped the psychologically important ¥70,000 level shortly after the opening bell. However, as a cautious mood set in ahead of the reopening of U.S. markets, selling spread across semiconductor-related and electronic component stocks, pushing the index into negative territory. At one point during the mid-morning session, the index extended its losses to the 68,900 level.

In terms of negative contribution, Tokyo Electron (8035.T) and SoftBank Group (9984.T) alone dragged the Nikkei down by approximately 464 points as of the morning close. By the market close, SoftBank Group and Ibiden (4062.T) accounted for a combined drag of roughly 283 points, with the decline in high-priced tech stocks weighing heavily on the index.

Among Nikkei 225 constituents at the close, 177 issues advanced, 48 declined, and none were unchanged. Across the broader Prime Market, 73% of stocks rose while 24% fell, highlighting the market’s breadth in contrast to the headline index’s decline.

Individual Stock Moves

Taiyo Yuden (6976.T) posted the steepest percentage decline, tumbling 10.65% at the morning close and ending the day down 10.58% — a double-digit drop. Murata Manufacturing (6981.T) was also heavily sold, falling 9.75% at the morning close and finishing 8.37% lower. Ibiden sank 8.37% by the close, ranking second in percentage decliners.

In the semiconductor space, Tokyo Electron plunged ¥2,440 to ¥70,760 at the morning close, while Advantest (6857.T) dropped ¥610 to ¥28,735. Kioxia Holdings (285A.T) also slumped ¥4,700 at the morning close. TDK (6762.T), SCREEN Holdings (7735.T), and Lasertec (6920.T) were broadly weak.

On the upside, Fast Retailing (9983.T) was the top positive contributor, surging ¥2,430 to ¥86,930 by the close and adding roughly 195 points to the Nikkei. Shin-Etsu Chemical (4063.T) ranked second, rising ¥457 to ¥7,415 and contributing approximately 76 points.

Mitsubishi Heavy Industries (7011.T) led percentage gainers, climbing 6.86% at the morning close and accelerating to an 8.39% gain by the market close. Kawasaki Heavy Industries (7012.T) was also firm, up 6.56% at the morning close. Japan Steel Works (5631.T) recorded a 7.48% gain by the close.

By sector, shipping, transportation equipment, and machinery rose, while glass and ceramics, non-ferrous metals, and precision instruments declined. The rotation into cyclical and value stocks was pronounced.

Top Nikkei Contributors (Market Close)

Top Positive Contributors

CodeNameLast Price (¥)Change (¥)Contribution (¥)9983Fast Retailing86,930+2,430+195.504063Shin-Etsu Chemical7,415+457+76.606857Advantest29,565+220+53.109766Konami Group18,750+485+16.267203Toyota Motor2,923+95+15.92

Top Negative Contributors

CodeNameLast Price (¥)Change (¥)Contribution (¥)9984SoftBank Group5,979-190-152.864062Ibiden21,390-1,955-131.076762TDK3,501-198-99.568035Tokyo Electron72,320-880-88.506976Taiyo Yuden18,385-2,175-72.91

Overall Market Movement

Trading on the Tokyo Stock Exchange Prime Market was active, with volume reaching 2.05888 billion shares and trading value totaling ¥9.81 trillion (approximately $60.5 billion). European markets were broadly firm, with Germany’s DAX index hitting a record high, and the shift in funds from growth stocks to cyclical and value names was evident in the Japanese market as well.

While the Nikkei was weighed down by declines in high-priced tech stocks, overall market sentiment has not deteriorated, as evidenced by TOPIX hitting a record high. Although active trading was restrained ahead of the U.S. market’s return from the holiday, buying centered on cyclical stocks underscored the market’s underlying resilience.

Market participants noted, “With U.S. markets closed and few trading cues available, profit-taking emerged in semiconductor-related names, but the rotation into cyclical stocks continues, and overall market conditions remain favorable.”