The Nikkei 225 Index Closes 2.61% Lower

The Nikkei 225 Index dropped -1403 points or 2.61 percent on Thursday to close at 52337 points. Losses were led by Sumitomo Dainippon (-9.27%), Taisei (-6.55%) and Advantest (-6.33%).

The Nikkei 225 Index slid 2.4% to close at 52,463, while the broader Topix Index slipped 1.6% to 3,612 on Thursday, reversing gains from the previous 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 SoftBank Group (-4.3%), Tokyo Electron (-3.2%), and Mitsubishi UFJ Financial (-1.7%).

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.