Japanese Shares Turn Higher

The Nikkei 225 Index rose 0.15% to close at 69,468, while the broader Topix Index gained 0.47% to 3,982 on Monday, reversing earlier losses as bargain hunters returned to pick up beaten-down stocks. Investors also kept a close watch on developments in the Middle East following renewed clashes between the US and Iran around the Strait of Hormuz, although both sides agreed to suspend further attacks ahead of peace talks scheduled for this week in Doha, Qatar. On the domestic front, data showed Japan's retail sales increased 5.3% in May, the fastest pace since November 2023, supported largely by a government stimulus package that boosted consumer spending. Among individual stocks, strong gains were recorded by Taiyo Yuden (10.9%), Tokyo Electron (2.4%), Sony Group (3.1%), Nintendo (5.3%), and Disco Corp (1.3%).

The Nikkei 225 Index decreased 284 points or 0.41 percent on Monday to close at 69077 points. The decline was led by Furukawa Electric (-90.48%), Sumitomo Electric (-76.33%) and Sumitomo (-75.17%). On the upside, the strongest performers were Taiyo Yuden (10.67%), J Front Retailing (6.35%) and Nintendo Co (6.13%).

The Nikkei 225 Index fell 1.3% to below 68,500, while the broader Topix Index slipped 0.5% to 3,944 on Monday, marking a second consecutive session of losses as investors monitored the latest developments in the Middle East. Oil prices climbed after renewed clashes between the US and Iran around the Strait of Hormuz, although both sides agreed to halt further attacks ahead of peace talks scheduled for this week in Doha, Qatar. Domestically, data showed Japan's retail sales rose 5.3% in May, the strongest increase since November 2023, supported largely by a government stimulus package that lifted consumer spending. Technology stocks led the declines amid mounting concerns over the sustainability of the AI-driven rally, with Kioxia (-8.8%), SoftBank Group (-5.2%), Fujikura (-7.7%), Advantest (-5.7%), and Ibiden (-7.5%) posting sharp losses.