Tokyo Stocks Dip on Middle East Tensions and Profit-Taking
Tokyo stocks opened lower on Friday, reversing some gains after the Nikkei index recorded a historic surge of over 3,300 points the previous day. The decline was driven by renewed geopolitical tensions in the Middle East, specifically exchanges of fire between the United States and Iran in the Strait of Hormuz, which triggered profit-taking among investors. The 225-issue Nikkei Stock Average closed down 120.19 points at 62,713.65, while the broader Topix index fell 0.29 percent to 3,829.48. Key decliners included banking, securities, and marine transportation sectors, alongside recent high-performers in artificial intelligence and semiconductors. Concurrently, the U.S. dollar strengthened against the yen, trading in the upper 156 range as investors sought safe-haven assets amid rising crude oil futures. Despite the downturn, market analysts noted the drop was relatively contained. Masahiro Ichikawa from Sumitomo Mitsui DS Asset Management suggested that limited attacks might not significantly hinder peace negotiations. Additionally, solid corporate earnings reports during the current season provided underlying support to investor sentiment, preventing a more severe market correction despite inflationary concerns linked to higher energy costs.
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Tokyo Stocks Dip on Middle East Tensions and Profit-Taking
Tokyo stocks opened lower on Friday, reversing some gains after the Nikkei index recorded a historic surge of over 3,300 points the previous day. The decline was driven by renewed geopolitical tensions in the Middle East, specifically exchanges of fire between the United States and Iran in the Strait of Hormuz, which triggered profit-taking among investors. The 225-issue Nikkei Stock Average closed down 120.19 points at 62,713.65, while the broader Topix index fell 0.29 percent to 3,829.48. Key decliners included banking, securities, and marine transportation sectors, alongside recent high-performers in artificial intelligence and semiconductors. Concurrently, the U.S. dollar strengthened against the yen, trading in the upper 156 range as investors sought safe-haven assets amid rising crude oil futures. Despite the downturn, market analysts noted the drop was relatively contained. Masahiro Ichikawa from Sumitomo Mitsui DS Asset Management suggested that limited attacks might not significantly hinder peace negotiations. Additionally, solid corporate earnings reports during the current season provided underlying support to investor sentiment, preventing a more severe market correction despite inflationary concerns linked to higher energy costs.
The Mainichi