Japan’s Nikkei closes flat as US signals end of Iran strikes
TOKYO: Japan’s Nikkei share average ended almost unchanged on Thursday, as investors assessed developments in the Middle East, recouping early losses after Washington confirmed that its overnight strikes on Iran had concluded.
The Nikkei closed 0.06% higher at 64,217.27, recovering from an early selloff of nearly 3%, although market breadth remained weak, with many stocks in negative territory. The broader Topix slid 0.45% to 3,830.35.
“There still appears to be a lack of drivers strong enough to attract meaningful fresh inflows, and investors remain somewhat cautious, suggesting the market is not yet ready for a decisive move higher, even if some buying has started to appear,” said Naoto Takahashi, an analyst at Aizawa Securities.
Market sentiment improved after the U.S. announced the completion of its strikes in Iran that came just hours after U.S. President Donald Trump warned of further attacks if a peace agreement was not reached. “… After the U.S. military declared early on that its attack had ended, investors took it as a signal urging Iran to move quickly toward an agreement,” said Shuji Hosoi, senior strategist at Daiwa Securities.
“That fostered the view that even military action was being used as leverage in pursuit of a negotiated settlement, fuelling speculation that a deal with Iran may not be far off.”
AI-related shares, which had dragged the Nikkei lower earlier in the session, narrowed some losses. Tech investment conglomerate SoftBank Group fell 1.4% after tumbling as much as 7.5%.
Fujikura, which produces optical fibre used in AI data centres, lost 1.2%, after dropping as much as 7.3% earlier in the session. Semiconductor testing equipment maker Advantest shed 0.2%.
On the Nikkei, 142 stocks fell against 81 gainers.
Defying the broader downturn, printing firm TOPPAN Holdings emerged as the top performer among the blue-chip stocks, rising 15.7%, the biggest percentage gain since October 2008. It was followed by seasonings maker Ajinomoto, up 7.5%, and memory-chip maker Kioxia gaining 7%.
REUTERS
