Stocks in Japan Hit 4-week Low

The Nikkei 225 Index slid 1.9% to around 52,700, while the broader Topix Index slipped 0.9% to 3,600 on Thursday, reversing gains from the early session as markets scaled back expectations for a quick end to the Middle East conflict after US President Trump's speech. Trump said Washington’s core objectives in the conflict were nearing completion, but gave no clear timeline for ending the war, while warning that the US could still strike Iran “extremely hard” over the next two to three weeks. He added that the US did not need the Strait of Hormuz, suggesting it would reopen naturally once tensions ease, though concerns over the waterway kept energy markets volatile. Hopes of an imminent end to the month-long conflict had earlier supported global equities, but his remarks reversed sentiment, sending stocks lower again. Most sectors declined, with index heavyweights leading losses, including Mitsubishi UFJ Financial (-1.9%), SoftBank Group (-1.4%), and Hitachi (-1.3%).

Asian shares tumbled on Thursday, reversing gains from the previous session as investors weighed the conflicting signals from US President Donald Trump regarding the potential easing of tensions in the Middle East. Trump warned in a national address that Washington would strike Iran “extremely hard” over the next two to three weeks as part of the ongoing military conflict and vowed that such attacks could “bring the country back to the Stone Ages.” However, he also highlighted ongoing diplomatic efforts, leaving investors cautious about the implications for global markets. The speech failed to match market expectations, as investor confidence, which had been strengthened by positive expectations before the speech, began to deteriorate after hearing Trump’s remarks. Trump recently claimed that Iran had requested a ceasefire, while Iran’s foreign ministry swiftly dismissed the report as “false and baseless,” further heightening uncertainty.

The Nikkei 225 Index rose 0.7% to around 54,100, while the broader Topix Index climbed 1.2% to 3,700 on Thursday, extending their rebound from the previous session amid optimism that the Middle East conflict may be nearing its end. Focus will be on President Trump’s address later today, with expectations the US could scale back military action against Iran. Trump signaled that a ceasefire could be considered “when the Strait of Hormuz is open, free, and clear,” adding that US forces may withdraw within two to three weeks. Meanwhile, Iran threatened retaliatory attacks on major US tech firms, warning they could be targeted if tensions with the US escalate further. Elsewhere, tariff concerns resurfaced as the Trump administration prepared a 25% levy on finished goods containing imported steel and aluminum. Among individual stocks, notable gains were seen from Toyota (+1.5%), SoftBank Group (+1.4%), Hitachi (+2%), and Mitsubishi (+2.1%).