The Nikkei 225 Index Closes 0.65% Lower

The Nikkei 225 Index dropped 0.73% to close at 65,878 on Monday, giving up earlier gains and ending a five-session winning streak. The decline came as oil prices jumped after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, while Tehran said it would not ease its conditions for reopening the vital waterway. Global bond yields also climbed amid elevated inflation risks and growing expectations for further monetary policy tightening. Investors also turned more cautious ahead of Micron Technology’s earnings later this week, which could provide clues on the outlook for artificial intelligence-related demand. Elsewhere, the Chinese government has indicated it may allow some companies to purchase Nvidia Corp.’s new RTX Pro 5500 chips. Notable declines among technology stocks included Kioxia (-4.4%), Ibiden Co (-4.4%) and Lasertec (-2.2%).

The Nikkei 225 Index decreased 220 points or 0.33 percent on Monday to close at 66144 points. The decline was led by Nidec (-17.61%), Chugai Pharma (-3.45%) and Daiichi Sankyo (-3.24%). On the upside, the strongest performers were Ebara (3.38%), Screen Holdings (2.26%) and Okuma (2.25%).

The Nikkei 225 Index advanced 0.9% to above 66,900 on Monday, extending its winning streak to six sessions, with technology and artificial intelligence-related stocks driving the gains. Last week, AI shares outperformed as Meta Platforms’ new Muse AI agent renewed enthusiasm for the sector after earlier warnings from CEOs about rising safety risks associated with AI development. The rally came despite Treasury yields climbing to multi-decade highs amid expectations for additional Federal Reserve rate hikes. Meanwhile, oil prices rose after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, while Tehran said it would not soften its conditions for reopening the key waterway. Elsewhere, the Chinese government has indicated it could allow some companies to purchase Nvidia Corp.’s new RTX Pro 5500 chips. Leading technology gainers in Japan included SoftBank Group (3.6%), Advantest (3.2%) and Taiyo Yuden (3.5%).