Japanese Shares Drop on Risk-Off Trades

2026-02-20 07:05 By Jam Kaimo Samonte 1 min. read

The Nikkei 225 Index fell 1.12% to close at 56,826, while the broader Topix Index declined 1.13% to 3,808 on Friday, snapping a two-day rally as escalating US-Iran tensions dampened risk appetite.

Trump said Iran had no more than 15 days to reach a deal over its nuclear program or face consequences.

Investors also turned cautious ahead of key US economic releases that could shape expectations for Fed policy.

On the domestic front, data showed Japan’s headline and core inflation eased in January, reflecting government efforts to mitigate cost-of-living pressures.

Technology and banking shares led the selloff, with notable declines in Advantest (-2%), Tokyo Electron (-1.5%) and Mitsubishi UFJ (-2.2%).

In corporate developments, Sumitomo Pharma plunged 15.6%, likely on profit-taking after securing conditional approval for its regenerative therapy.

Both benchmark indexes were on track to end the week broadly unchanged.

Japanese markets will be closed on Monday for a holiday.



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