The Nikkei 225 Index Closes 0.68% Lower

The Nikkei 225 Index decreased 407 points or 0.68 percent on Thursday to close at 59179 points. The decline was led by Nikon Corporation (-10.63%), Tokyo Electric Power (-6.22%) and Mitsui Engineering & Shipbuilding (-6.07%). On the upside, the strongest performers were Renesas Electron (5.95%), Mitsubishi Heavy Industries (5.57%) and Softbank (4.45%).

Japan’s Nikkei 225 Index dropped 0.75% to close at 59,140 on Thursday, while the broader Topix Index declined 0.76% to 3,716, 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 Middle East conflict. Among individual movers, notable losses were seen in heavyweight names including Disco Corp (-3.8%), Fujikura (-1.5%), Lasertec (-3.1%), Furukawa Electric (-3.5%), and JX Advanced Metals (-4.2%).

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.