Nikkei poised for fourth weekly loss as Mideast war spurs risk-off mood
Add BT as a preferred source
[TOKYO] Japan’s Nikkei share average fell on Friday, and was on track for a fourth straight weekly decline, as fading hopes for an imminent ceasefire in the US-Israeli war with Iran dampened market optimism and pushed investors into risk-off mode.
The Nikkei was down 1 per cent at 53,077.94, as of 0141 GMT, after sliding as much as 2 per cent earlier in the session, losing 0.6 per cent so far this week. The broader Topix shed 0.3 per cent to 3,631.87.
“Markets appear to be reacting to deep uncertainty over how talks aimed at securing a ceasefire between the United States and Iran will unfold,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
Japan’s economy remains highly exposed to spikes in crude oil prices due to its heavy reliance on imported energy. The closure of the Strait of Hormuz weighs heavily on Japan, which gets around 90 per cent of its oil shipments via the passage.
US President Donald Trump said he will pause attacks on Iran’s energy plants for 10 days at Teheran’s request, adding that talks with Iran were going “very well.”
An Iranian official, however, dismissed Washington’s proposal to end the conflict as “one-sided and unfair,” clouding prospects for de-escalation.
On the Nikkei index, 110 stocks advanced, while 113 declined.
Leading the decline was cables and components manufacturer Furukawa Electric, which fell 7.8 per cent after a three-day winning streak. Air conditioning systems leader Daikin Industries slumped 7.7 per cent and Sumitomo Electric lost 6.9 per cent.
Artificial intelligence-related stocks were also down. Chip-testing equipment maker Advantest fell 3.8 per cent to drag the Nikkei the most.
The key gauge’s biggest percentage gainers were cosmetics maker Shiseido, up 5.6 per cent, followed by flea market app operator Mercari gaining 3.8 per cent and medical endoscopes and optics company Olympus adding 3.5 per cent. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
DBS completes US$1 billion significant risk transfer deal, a first for Singapore bank
Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan
Singapore private housing is ‘decoupling’ from HDB market as buyer pools diverge: NUS survey
Not in education, employment or training: Why more Hong Kong youths are opting out of work
