Japanese stocks experienced a downturn on Friday, primarily influenced by escalating tensions between the US and Iran and upcoming key US economic data releases. This risk-off sentiment led to a broad selloff, particularly affecting technology and banking sectors. Despite the day’s losses, both the Nikkei and Topix were on track to end the week relatively unchanged.
- The Nikkei 225 Index fell 1.12% to close at 56,826.
- The broader Topix Index declined 1.13% to 3,808.
- Escalating US-Iran tensions dampened risk appetite.
- Investors were cautious ahead of key US economic releases.
- Japan’s headline and core inflation eased in January.
- Technology and banking shares led the selloff, with Advantest, Tokyo Electron, and Mitsubishi UFJ experiencing notable declines.
- Sumitomo Pharma plunged 15.6%.
- Japanese markets will be closed on Monday for a holiday.
The Japanese market is currently reacting to a combination of global geopolitical uncertainties and domestic economic factors. Investor sentiment is sensitive to international events, particularly those involving potential conflict. Domestically, inflationary pressures are easing, potentially influencing monetary policy decisions. Sector performance is varied, with some areas experiencing significant declines, suggesting a cautious approach from investors and potentially creating opportunities or risks depending on future developments.