Nikkei 225 Drops for Three Sessions Amid Mixed Economic Data

The Nikkei 225 index entered a three-session losing streak between July 6 and July 8, 2026, falling from 69,737.69 to 67,977.72. The decline began with a marginal slip on Monday, followed by a 0.66 percent drop on Tuesday driven by weakness in technology stocks like Sumco and Kioxia Holdings. By Wednesday, the index fell another 0.41 percent as negative cues from Wall Street pressured automakers including Toyota and Honda.

Economic reports from Japanese agencies provided a mixed backdrop. The Ministry of Internal Affairs and Communications reported a seasonally adjusted 3.7 percent increase in household spending for May, surpassing expectations. However, later data showed a shortfall in forecasts; the Bank of Japan reported June bank lending rose 5.7 percent year-on-year to 676.138 trillion yen, and the Ministry of Finance reported a May current account surplus of 3.968 trillion yen, both of which missed market targets.

Energy markets shifted rapidly during the period. Prices initially dipped after OPEC agreed to increase output, but crude oil prices spiked on Wednesday following attacks on at least three tankers in the Strait of Hormuz. These attacks raised concerns over conflicts between the United States and Iran, adding further volatility to global markets.