Japanese shares slump as Iran tensions escalate, yen surges
EWJ•Sector and stock moves
In Topix sector moves, glass makers and transportation equipment were the biggest laggards, down 4.44% and 4.14%, respectively.
Decliners outnumbered advancers in the Nikkei 225, with 165 stocks falling, 59 rising, and one traded flat.
JTEKT 6473.T was the benchmark index's biggest loser, tumbling 8.68% for its sharpest one-day drop since August 2024. Alps Alpine 6770.T fell 8.29%, while Okuma 6103.T lost 7.99%.
The largest percentage gainer in the index was Nitori Holdings 9843.T, which benefits from a stronger yen as it manufactures most of its household goods overseas for sale in Japan. It surged 5.47%, marking its highest close since February.
Japanese stocks fall as risk sentiment weakens
Japanese shares fell sharply on Tuesday as renewed geopolitical tensions damped risk sentiment and a sudden surge in the yen weighed on exporters.
The benchmark Nikkei 225 index .N225 slid 1.7% to close at 65,269.33. The broader Topix .TOPX slipped 1.83% to 4,050.33.
Iran tensions and yen strength pressure the market
Iran escalated threats against the United States and said it had fired an advanced missile at U.S. warships, keeping oil prices near multi-week highs.
With inflation pressures mounting, markets are pricing a near-certain Bank of Japan rate hike to 1.25% next week. The prospect of tighter monetary policy has boosted the yen, which strengthened to 152.89 per dollar, its highest level since February.
