The Nikkei 225 Index Closes 0.80% Lower

The Nikkei 225 Index fell -454 points or 0.80 percent on Monday to close at 56470 points. Leading the losses are Toto (-6.72%), Yokohama Rubber (-4.81%) and Mitsubishi Motors (-4.27%). Top gainers were Dentsu (10.17%), Sumco (7.47%) and Yaskawa Electric (6.48%).

Asian equity markets declined on Monday as oil prices spiked after the weekend negotiations between the US and Iran in Islamabad failed to produce a deal. President Donald Trump also announced plans to blockade the Strait of Hormuz and is reportedly considering renewed strikes on Iran, heightening concerns over a wider escalation in the global energy crisis. Benchmark indices in Australia, Japan, South Korea, Hong Kong, and China all traded lower.

The Nikkei 225 Index declined 0.88% to close at 56,430 on Monday, giving back part of last week’s gains as oil prices spiked following the failure of US–Iran negotiations over the weekend in Islamabad. President Donald Trump also announced plans for a blockade of the Strait of Hormuz and is reportedly considering renewed strikes on Iran, raising concerns over a broader escalation in the global energy crisis. In Japan, the benchmark 10-year JGB yield rose to around 2.49%, its highest level since 1997, as surging energy costs strengthened expectations of a near-term Bank of Japan rate hike. Meanwhile, Economy Minister Ryosei Akazawa noted that BOJ monetary policy could be used as a tool to curb inflation by supporting a stronger yen. Notable losses were seen from index heavyweights such as Furukawa Electric (-1.1%), Tokyo Electron (-3.6%), Sumitomo Electric (-6.2%), Ibiden Co (-5.1%) and Sony Group (-2.2%).