Japan's Nikkei trades lower as uncertainties in Middle East conflict weigh
TOKYO: Japan's Nikkei share average reversed early gains to trade lower on Friday as geopolitical risks surrounding the Middle East conflict weighed on sentiment.
As of 0208 GMT, the Nikkei was down 0.1% at 38,442.36, after rising as much as 0.4% earlier in the session.
The index is set to rise 1.6% for the week. The broader Topix fell 0.29% to 2,784.02 but is on course to post a 1% weekly gain.
'With the absence of market-moving catalysts, uncertainties surrounding the Middle East tensions dragged investor sentiment,' said Shoichi Arisawa, general manager of the investment research department at IwaiCosmo Securities.
The White House said on Thursday that US President Donald Trump will make a decision within the next two weeks whether to support Israel in its ongoing conflict with Iran.
'On top of the uncertainties about the conflict in the region, the outlook of the US tariff plans remains unclear,' said Arisawa. Uniqlo-brand owner Fast Retailing fell 2.1%, dragging the Nikkei the most. Game maker Konami Group lost 1.7%.
Department store operator J.Front Retailing fell 2.87% to become the worst performer of the Nikkei.
Nikkei hits four-month high on weaker yen
Chip-testing equipment maker Advantest jumped 4.6% to become the biggest support to the Nikkei.
Chip-making equipment maker Tokyo Electron reversed early gains to trade 0.25% lower.
Machinery maker Amada rose 5% to become the top performer of the Nikkei.
Of more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 37% rose and 57% fell, while 4% traded flat.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
Anti-Trump "Dictator Approved" sculpture erected on National Mall, White House responds
An anti-Trump sculpture titled 'Dictator Approved' has been installed on the National Mall, igniting backlash from both political observers and the White House. The gold-painted, 8-foot artwork features a thumbs-up hand crushing the Statue of Liberty's crown, with plaques quoting authoritarian leaders who have publicly praised Donald Trump. The installation, permitted by the National Park Service, coincided with Trump's June 14 military parade marking the U.S. Army's 250th anniversary and his 79th birthday. Organisers of the artwork say it was intended to criticise what they described as 'imagery similar to autocratic, oppressive regimes.' Each side of the sculpture's base features direct quotes, including Vladimir Putin calling Trump 'a very bright and talented man,' Viktor Orbán describing him as 'the most respected,' Jair Bolsonaro admiring their 'shared values,' and Kim Jong Un citing 'extraordinary courage.' In response, White House spokesperson Abigail Jackson stated: 'If these Democrat activists were living in a dictatorship, their eye-sore of a sculpture wouldn't be sitting on the National Mall right now.' She added, 'In the United States of America you have the freedom to display your so-called 'art,' no matter how ugly it is.' The statue is authorised to remain in place through Sunday.
Business Recorder
2 hours ago
- Business Recorder
China's yuan rises on stronger fixing, weaker dollar outlook
HONG KONG: China's yuan firmed against the US dollar on Friday as the central bank set the daily fixing stronger and as expectations of dollar weakness supported the currency. Prior to the market opening, the People's Bank of China set the midpoint rate at 7.1695 per dollar - its strongest since March 17 and 106 pips firmer than a Reuters' estimate. The PBOC has guided the yuan's daily fixings firmer in recent sessions — a move viewed as an effort to boost confidence in the currency amid an uneven Chinese economy and uncertainty over Sino-US trade talks. Meanwhile, China kept benchmark lending rates unchanged as expected on Friday, after Beijing rolled out sweeping monetary easing measures a month earlier to support the economy. By 0400 GMT, the yuan was 0.08% higher at 7.1811 to the dollar after trading in a range of 7.1756 to 7.1822. Its offshore counterpart traded at 7.1819 yuan per dollar, up about 0.06% in Asian trade. The sluggish dollar performance in June amid concerns over the ballooning US fiscal deficit and the durability of US assets due to the trade war, also helped the yuan. 'Emerging market currencies are marginally stronger versus the dollar month-to-date and have held onto their May gains', Goldman Sachs analysts said in a note. China's yuan hits one-week low on worries over Middle East conflict The bank expects some low yielding Asian currencies, including Chinese yuan, to continue to perform well versus the dollar. The yuan is up 0.3% against the dollar this month, and 1.7% this year. The PBOC governor vowed to promote further yuan internationalisation at the 2025 Lujiazui Forum earlier this week, also lifting sentiment. Separately, the Hong Kong dollar hit 7.85 per US dollar on Friday, touching the weak end of its trading band against the dollar for the first time since May 2023, according to LSEG data.
Business Recorder
2 hours ago
- Business Recorder
Euro zone yields on track for a weekly drop, Middle East in focus
Euro zone government bond yields were on track for a weekly decline as the Israel-Iran air war entered its eighth day, with investors downplaying inflation concerns while awaiting clarity on a potential US involvement in the conflict. President Donald Trump will make a decision in the next two weeks, the White House said on Thursday, raising pressure on Tehran to come to the negotiating table. German 10-year yields, which serve as the benchmark for the wider euro zone, fell 2.5 basis points (bps) to 2.49%, and were set to end the week 4.5 bps lower. Money markets priced in a European Central Bank deposit facility rate at 1.77% in December, compared with 1.75% last week. The yield on the German two-year bonds, which are more sensitive to expectations for ECB policy rates, was down 1.5 bps at 1.83%. Euro zone bond yields steady before Fed, traders await new catalysts A drop in appetite for risk assets widened yield spreads for government bonds of highly indebted countries, such as Italy and France, against safe-haven German Bunds. Italy's 10-year yields dropped 4.5 bps to 3.50%. Italian yield gap against Bunds - a market gauge of the risk premium investors demand to hold Italian debt – tightened to 100 bps on Friday, but was set for its biggest weekly rise in a year.
