The Nikkei 225 Index Closes 1.53% Lower

The Nikkei 225 fell 0.9% to below 57,600, while the broader Topix declined 1% to 3,860 on Tuesday, extending the previous session’s losses as escalating tensions in the Middle East drove oil prices higher and intensified global inflation concerns. Japan faces the risk of sluggish growth alongside persistent price pressures, a mix that complicates the policy outlook for the Bank of Japan, even as Deputy Governor Ryozo Himino signaled that the central bank intends to continue raising interest rates. Investors also tracked further developments in the region amid expectations that the US military would intensify strikes against Iran, targeting its missile production facilities, drone programs and naval assets. Notable losses were recorded among export-oriented heavyweights, including Toyota Motor (-5.5%), Mitsubishi Heavy Industries (-1.9%), Sony Group (-4.3%), Fast Retailing (-3.2%) and Hitachi (-2.3%).

The Nikkei 225 Index fell -903 points or 1.53 percent on Monday to close at 57948 points. Leading the losses are Nomura (-6.78%), Shizuoka Bank (-5.61%) and Japan Airlines (-5.58%).

The Nikkei 225 Index dropped 1.35% to close at 58,057 on Monday, giving back gains from last week as the escalating war in the Middle East fueled risk-off sentiment across financial markets. The US and Israel carried out military strikes on Iran over the weekend that resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, and the effective closure of the Strait of Hormuz. Tehran retaliated by targeting US assets across the region, raising concerns of a broader conflict. Japanese shares also mirrored losses on Wall Street from Friday as investors weighed whether rapid AI adoption could displace traditional software providers. Still, local equities had been among February’s top performers, with the Nikkei rising 10.4% last month amid global investor rotation into Asian companies positioned to benefit from expanding AI infrastructure. Sharp losses were seen from index heavyweights such as Mitsubishi UFJ (-5%), Advantest (-3.9%), SoftBank Group (-1.1%) and Nintendo (-2.8%).