The Nikkei 225 Index Closes 0.34% Higher

Japan’s Nikkei 225 Index dropped 1.2% to below 59,000 on Thursday, while the broader Topix Index also declined 1.2% to 3,700, reversing earlier session gains as stalled US-Iran peace talks weighed on risk sentiment. The Strait of Hormuz remains effectively closed as Tehran maintains control of the strategic waterway, while the US blockade of Iranian ports continues, keeping energy prices elevated and inflation risks in focus. Meanwhile, President Donald Trump said the current truce would remain in place indefinitely as Washington awaits a new peace proposal from Iran. In Japan, attention has shifted toward next week’s Bank of Japan policy meeting, as policymakers grapple with heightened uncertainty stemming from the regional conflict. Among individual movers, notable losses were seen in heavyweight names including Disco Corp (-4.3%), Fujikura (-2.4%), Lasertec (-2.2%), Furukawa Electric (-2.7%), and JX Advanced Metals (-3.5%).

Asian equity markets mostly declined on Thursday as stalled US-Iran peace negotiations dampened risk appetite. Sentiment remained fragile amid ongoing tensions in the Middle East and continued disruption around the Strait of Hormuz, which remains effectively closed as Tehran maintains control of the strategic waterway and has seized two vessels. The US blockade of Iranian ports also remains in place, contributing to elevated energy prices and persistent inflation risks. Meanwhile, President Donald Trump said the current truce would remain in effect indefinitely while Washington awaits a new peace proposal from Iran. Shares in Australia, South Korea, Japan, China, and Hong Kong were all weaker, giving back tech-driven gains from earlier in the session.

Japan’s Nikkei 225 Index climbed 0.8% to above 60,000 on Thursday, surpassing the key threshold for the first time, driven by strong gains in technology stocks as an extension of the US-Iran ceasefire lifted risk appetite. President Donald Trump said the current truce would remain in place indefinitely while Washington awaits a new peace proposal from Iran, although Tehran has indicated it does not intend to join negotiations in the near term. However, the US blockade of Iranian ports remains in force, while Tehran has seized two vessels in the Strait of Hormuz as it continues to assert control over the strategic passage. Leading tech gainers in Japan included Kioxia Holdings (3.3%), SoftBank Group (6.8%), Advantest (2.3%), Hitachi (4.7%), and Renesas Electronics (5.5%). On the downside, notable declines were recorded by Disco Corp (-1.1%), Lasertec (-2.5%), and Recruit Holdings (-4.6%).