The Nikkei 225 Index Closes 3.24% Lower

The Nikkei 225 Index fell 2.2% to below 50,800, while the broader Topix Index dropped 1.4% to 3,492 on Tuesday, marking a fourth consecutive session of losses as oil prices rallied further on fresh escalations in the Middle East conflict. In recent developments, Iran struck a Kuwaiti oil tanker near a Dubai port, highlighting heightened risks for shipping in the Persian Gulf and further restricting global access to Middle East energy. Markets continued to grapple with the potential inflation shock, causing a sharp selloff in equities. Technology stocks led the decline, with steep losses from Kioxia Holdings (-5.8%), Advantest (-4.8%), Lasertec (-5.5%), Disco Corp (-4.8%), and SoftBank Group (-4.3%), while heavyweight financial, defense, and consumer stocks also came under pressure. The Nikkei and Topix are set to fall more than 13% and 11%, respectively, for the month.

The Nikkei 225 Index dropped -1727 points or 3.24 percent on Monday to close at 51646 points. Losses were led by Fujikura (-84.18%), Kawasaki (-80.81%) and Keio (-80.25%).

Asian equity markets declined on Monday as hostilities in the Middle East entered their fifth week with no sign of easing. Tensions escalated after President Donald Trump said he could “take the oil in Iran,” while Iran-backed Houthi militants in Yemen joined the conflict after targeting Israel over the weekend. Surging oil prices from the Iran war fueled concerns over inflation and slower growth, prompting expectations that major central banks may maintain a hawkish stance this year. Shares in Japan and South Korea fell more than 3%, while equities in Australia, China, and Hong Kong also came under pressure.