Japanese Shares Struggle on Mideast Uncertainty

The Nikkei 225 Index edged up 0.1% to above 59,400, while the broader Topix Index fell 0.8% to 3,740 on Wednesday, as Japanese equities struggled for direction after plans for a second round of US-Iran peace talks collapsed. The US also maintained its blockade on Iranian vessels, even as President Donald Trump extended the current ceasefire with Tehran. In Japan, data showed exports increased for a seventh consecutive month on firm demand from China and ASEAN economies, though the trade surplus came in at 667 billion yen, missing forecasts of 1.1 trillion yen. Among individual stocks, gains were led by Kioxia Holdings (2.6%), SoftBank Group (3.8%), and Advantest (3.1%), while notable declines were seen in Fujikura (-2.1%), Mitsubishi Heavy Industries (-3.3%), and IHI Corp (-4.8%).

The Nikkei 225 Index advanced 0.89% to close at 59,349 on Tuesday, extending gains from the previous session as technology and AI-related stocks led the market higher. Sentiment was also supported by softer oil prices, with investors focusing on a second round of US-Iran peace talks in Islamabad ahead of the expiration of the current ceasefire this week. Vice President JD Vance is expected to lead the US delegation again, while Iran is also reportedly preparing to send representatives, reversing earlier signals that it would not take part in further negotiations. Japan’s economy remains sensitive to developments in the Middle East due to its heavy reliance on oil imports from the region. Notable tech gainers included Kioxia Holdings (7.3%), SoftBank Group (8.5%), Fujikura (6.5%), Lasertec (5.7%), and Tokyo Electron (3.5%).

The Nikkei 225 Index gained 597 points or 1.02 percent on Tuesday to close at 59422 points. Gains were led by Softbank (8.27%), Resonac Holdings (7.36%) and Fujikura (6.24%).