By Alexandra Harper 
Japanese stocks gave up early gains on Friday October 2, 2026, ending a two-day winning run as investors cashed in profits after a 3.3% jump on Thursday, with SoftBank Group sliding and higher-than-expected Tokyo inflation keeping pressure on the Bank of Japan, but the index still recorded a third straight weekly rise.
What was the closing price of the Nikkei 225 on October 2, 2026?
The Nikkei 225 closed at 68,309.46 on Friday October 2, 2026, down 647.26 points, or 0.94%, from Thursday’s close of 68,956.72. The index began at 68,313.46, touched a high of 68,741.49 soon after 9:20 a.m. and a low of 68,132.16 in mid-morning. It opened the afternoon session lower and meandered for the rest of the day.
The Nikkei lost ground on Friday but nevertheless finished the week up 2.93 percent, its third consecutive weekly gain. The index stands at 68,309.46, down roughly 6.2% from its record closing high of 72,831.73 on June 22, 2026.
Why Did the Nikkei Drop Today?
Profits took over. The Nikkei soared 3.30% on Thursday, its biggest one-day gain since Aug. 17, on a chip rally after excellent earnings from Micron. Investors took profits on Friday. Also, many held back from further buying ahead of the US September jobs report, due after the Tokyo close, with some support seen as the index hit 68,000.
The energy prices contributed to the caution. Oil rose in Asian trade on growing fears that a potential flare-up in the US-Iran crisis may further disrupt supplies in the Middle East and stoke inflation. Japan imports nearly all of its crude thus increased oil prices tend to hurt company profitability and the trade balance.
How did inflation in Tokyo affect the Japanese stock market?
Tokyo’s core consumer price index, excluding fresh food, climbed 2.7% year on year in September, above the prediction for 2.4%. It was the biggest gain since November 2025 and the first time in nine months inflation has above the Bank of Japan’s 2% objective. A more robust result is considered as a leading indication for national inflation and strengthens hopes that the central bank will continue to raise interest rates. The yen was steady after the release.
Higher domestic rates are a double-edged sword for Nikkei: they boost bank profitability, but can affect exporters via a stronger yen and weigh on growth stocks by increasing discount rates.
Which Nikkei Stocks Were the Movers?
SoftBank Group was one of the biggest negative contributors to the price-weighted index, down 5.83% after it said it had completed the third and final $10 billion tranche of an investment previously negotiated. Nissan Motor sank 4.57% and medical device firm Terumo dipped 4.15%. Tokyo Electron sank 3.82%, Fast Retailing lost approximately 1.5% and Toyota retreated about 1.8%.
Advantest, a maker of equipment to test chips, reversed course, climbing 2.71%, on sustained strength in AI-related demand. Among banks, Sumitomo Mitsui Financial and Mizuho fell back, while Mitsubishi UFJ advanced during the session.
Performance of the wider Tokyo market
The weakness was rampant. The TOPIX index entered the afternoon session lower, with SoftBank Group, Tokyo Electron and Fast Retailing the most negative contributors to the Nikkei by points. SoftBank Group, Toyo Engineering, Nissan Motor, Tokyo Electron, Rakuten Group, Orix and Tokio Marine were the most active by value on the Prime Market.
The pullback should be considered as part of a robust rally. The index rose to 66,753.72 on 30 September, its best finish since 19 August, before Thursday’s 3.30% jump. Some resiliency came through when the index approached the 68,000 mark, indicating that investors are still prepared to buy on dips.
What Are the Technical Levels for Nikkei 225?
68,000 is near-term support, with buying coming in as the index hit that level on Friday and the session low at 68,132.16. Resistance is at Friday’s high of 68,741.49 and then 69,000. A break above that would bring the all-time high of 72,831.73 from 22 June back into focus. Another element to watch is Japanese government bond yields, with the 10-year yield hitting 3% in early September for the first time since 1996 and any additional increase could weigh on equities prices.
In Brief: Global Markets
Hong Kong’s Hang Seng dropped 2.6% to 23,972.29 in its first session after National Day. Mainland China and India were closed. The US jobs report later showed just 29,000 new jobs in September, well below the projected 84,000, lifting Wall Street: the S&P 500 surged 0.73% and the Nasdaq Composite gained 1.19%, setting a record intraday high as Nvidia hit an all-time high. The DAX40 in Europe was up 1.17%.
What to Watch: Investor Takeaway – Nikkei’s Next Move
The Nikkei’s fall looks more like a consolidation after a great week, than a trend change, particularly with disappointing US jobs data on Friday and a record Nasdaq session expected to bolster tech stocks when Tokyo reopens on Monday. Support in the near-term is around the 68,000 range, and a move over 69,000 might bring the June record back into view. The key risks include a fresh surge in oil prices and more signals that the Bank of Japan may tighten policy more quickly than markets anticipate.
Frequently Asked Questions
On October 2, 2026, the Nikkei 225 closed at 29,000.00.
Nikkei 225 finished at 68,309.46, down 647.26 points, or 0.94%.
Why did Japanese equities drop on 2 October 2026?
Investors pulled profits after Thursday’s 3.3% surge, with SoftBank falling 5.83%, oil prices rising and Tokyo core inflation coming in above predictions.
How did the Nikkei do for the week?
The Nikkei was up 2.93 percent for the week, marking a third consecutive weekly rise.