Japan Market Daily | Kabutaro & Friends

On May 26, 2026, the Nikkei 225 snapped its three-day winning streak, closing down 162.10 yen at 64,996.09 yen. With Wall Street closed the previous day for the Memorial Day holiday, the Tokyo market lacked clear direction, prompting investors to lock in gains after a massive surge of over 5,000 yen during the prior three sessions. The benchmark index tumbled by over 500 yen early in the morning before bargain hunting in lagging sectors like construction and real estate provided downside support. The broader TOPIX also ticked down by 4.11 points to end at 3,938.46. Market participants adopted a cautious stance as stalled progress in the final stages of the U.S.-Iran negotiations checked the recent decline in crude oil prices and bond yields, keeping the global focus on geopolitical developments and inflation trends.