Japanese Shares Mixed as Yen Strengthens

The Nikkei 225 rose 0.4% to above 59,500, while the broader Topix slipped 0.5% to 3,708 in choppy trading on Friday, as Japanese equities faced pressure following a more than 2% surge in the yen after authorities intervened to support the currency. A stronger yen tends to weigh on Japan’s export-driven sectors and makes local assets less attractive to overseas investors. Market participants also kept a close watch on developments in the Middle East after President Donald Trump reaffirmed the US would maintain its naval blockade of Iranian ports, while Tehran reiterated it would not relinquish its nuclear capabilities and signaled continued control over the Strait of Hormuz. Performance across Japanese stocks was mixed, with notable gains from SoftBank Group (3.1%), Tokyo Electron (7.9%), and Keyence Corporation (4.4%). On the downside, losses were led by Kioxia Holdings (-2%), Lasertec Corporation (-2.8%), and Nintendo (-2.2%).

The Nikkei 225 Index fell 1.06% to close at 59,285, while the broader Topix Index dropped 1.19% to 3,727 on Thursday, extending losses from the prior session as oil prices rallied on reports that the US military would brief President Trump on potential action against Iran, raising concerns that the conflict could escalate. Trump also reiterated that the US would maintain its naval blockade on Iran until a nuclear agreement is reached. Japan’s heavy dependence on Middle Eastern oil imports added further pressure on the market. Meanwhile, the Federal Reserve left its policy rate unchanged as widely expected, although four policymakers dissented from the decision. On the domestic front, data showed Japan’s industrial output unexpectedly declined in March, while retail sales came in stronger than anticipated. Significant losses were recorded among key index heavyweights, including Advantest (-5%), Fujikura (-4.9%), Mitsubishi UFJ (-2%), Mitsubishi Heavy (-3.8%), and Hitachi (-3.3%).

The Nikkei 225 Index dropped 677 points or 1.13 percent on Thursday to close at 59240 points. Losses were led by Fujitsu (-14.54%), Oriental Land (-9.90%) and Central Japan (-7.86%).