The Nikkei 225 Index Closes 0.11% Lower

The Nikkei 225 Index edged up 0.06% to close at 64,217 on Thursday, recovering after tumbling as much as 2.87% earlier in the session as the US military announced it had completed its latest strikes on Iran, boosting hopes that peace negotiations could resume. However, technology stocks remained under pressure amid lingering concerns over elevated AI-related valuations, weighing on Japanese companies with significant exposure to the global AI boom. Domestically, the Bank of Japan is widely expected to raise interest rates next week as policymakers grapple with soaring energy costs linked to the Middle East conflict. Among individual stocks, Kioxia Holdings (7%), Taiyo Yuden (6.2%), and Murata Manufacturing (3.7%) posted strong gains, while SoftBank Group (-1.4%), Fujikura (-1.2%), and Toyota Motor (-2.4%) ended sharply lower.

The Nikkei 225 Index decreased 71 points or 0.11 percent on Thursday to close at 64108 points. The decline was led by Hino Motors (-5.42%), Kawasaki (-4.21%) and Toho Zinc (-4.13%). On the upside, the strongest performers were Toppan (15.07%), Ajinomoto (8.37%) and Resonac Holdings (6.59%).

The Nikkei 225 Index fell 2.1% to below 63,000, while the broader Topix Index lost 1.4% to 3,793 on Thursday, with both benchmarks touching three-week lows after the US launched fresh strikes against Iran, driving oil prices higher. Technology stocks also remained under pressure amid persistent concerns over elevated AI-related valuations, weighing heavily on Japanese companies with significant exposure to the global AI expansion. At home, the Bank of Japan is widely expected to raise interest rates next week as policymakers contend with soaring energy costs linked to the Middle East conflict. Tech and AI-related shares led the losses, with Tokyo Electron (-1.3%), Taiyo Yuden (-3.4%), SoftBank Group (-4.6%), Fujikura (-4.8%), and Advantest (-3.3%) posting notable declines. Financial and consumer stocks also weakened, adding to the broader market downturn.