The Nikkei 225 Index Closes 2.95% Lower

The Nikkei 225 Index fell 0.09% to close at 53,700 on Tuesday, reversing earlier gains as oil prices rebounded on supply disruption fears in the Middle East. Iran has intensified attacks on energy infrastructure in the region, while most countries have so far resisted US President Donald Trump’s call for support in safeguarding commercial activity in the Strait of Hormuz. The rise in oil prices has fueled inflation concerns, with oil-importing economies like Japan particularly vulnerable to supply shocks. Meanwhile, the Bank of Japan is expected to keep its policy rate unchanged this week amid heightened uncertainty over the Iran war’s impact on the domestic economy. Tech stocks led the decline, with notable losses from Kioxia Holdings (-4.4%), Fujikura (-4%), Lasertec (-5.2%), Advantest (-2.5%), and SoftBank Group (-1.8%).

The Nikkei 225 Index rose 139 points or 0.26 percent on Tuesday to close at 53890 points. Leading the gains are Kawasaki Kisen (5.95%), Daiichi Sankyo (5.82%) and Taiyo Yuden (5.30%). Top losers were Furukawa Electric (-6.51%), Sumitomo Electric (-5.91%) and Furukawa (-5.25%).

The Nikkei 225 Index rose 0.5% to around 54,000 while the broader Topix Index gained 1.5% to 3,665 on Tuesday, snapping a three-day decline and tracking a rebound on Wall Street overnight as easing oil prices helped lift investor sentiment. The move came as several tankers safely navigated the Strait of Hormuz, while major economies are expected to release petroleum reserves to help offset potential supply disruptions. The recent surge in oil prices had fueled inflation concerns, with oil-importing economies like Japan particularly vulnerable to supply shocks. Meanwhile, the Bank of Japan is expected to keep its policy rate unchanged this week amid heightened uncertainty over the Iran war’s impact on the domestic economy. Defense and financial stocks led the rebound, with notable gains from Mitsubishi Heavy (3.5%), Kawasaki Heavy (2.3%), Mitsubishi UFJ (1.8%), Sumitomo Mitsui (2.4%), and Mizuho Financial (2.4%).