Japan's Nikkei edges lower as tech sector weighs, energy shares rise

By Rocky Swift

TOKYO, Oct 26 (Reuters) - Japan's Nikkei share gauge edged lower on Monday as chip-related shares fell after a weaker Wall Street session, while energy-linked shares gained on higher oil prices.

The benchmark Nikkei 225 .N225 slid 0.43% to 62,425.47 in morning trade, down for a third straight session and poised for its lowest close since July 30. The broader Topix .TOPX gained 0.48% to 3,984.74.

US share gauges ended lower on Friday, but the S&P 500 energy sector rose 2.5% to a record. Oil prices slid from a six-month high on Monday after reports that Qatari mediators visited Tehran to seek de-escalation in coordination with the United States, following intensified Houthi attacks on Saudi Arabia that had stoked supply concerns.

"The Nikkei Stock Average is showing signs of short-term technical undervaluation," Monex Securities senior analyst Satoshi Saito said in a note. "Stocks may see phases of short-term rebound, but with several concerns in the background, the recovery may remain sluggish for now."

Breadth was largely positive on the Nikkei, but the heavy weighting of tech shares dragged it lower. The gauge had 166 gainers and just 59 decliners.

The largest losers were Sumco 3436.T, down 4.03% and on track for its lowest close since April 2026, followed by Kokusai Electric 6525.T, down 3.86%, and Screen Holdings 7735.T, down 3.78%.

The largest percentage gainers in the index were Inpex 1605.T, up 4.92%, followed by JGC Holdings 1963.T, up 4.56%, and Mitsubishi Corp 8058.T, which gained 4.28%.