EWJ•EWJ•Japan's Nikkei share average fell on Monday as investors weighed the corporate outlook after a renewal of conflict in the Middle East lifted oil prices.
The Nikkei .N225 fell 1.12% to 67,786.86 by the midday break, while the broader Topix .TOPX edged down 0.2% to 4,027.82.
"The market was concerned about increasing costs due to the rise in oil prices, and this came as the earnings season for Japanese firms kicked off," said Daisuke Hashizume, a senior analyst at Daiwa Securities.
Oil prices jumped on Monday as Iran expanded strikes on Gulf states following attacks by the United States, threatening energy shipments via the Strait of Hormuz.
Chip-related stocks dragged the Nikkei lower, with Advantest 6857.T and Tokyo Electron 8035.T falling 1.54% and 1.14%, respectively.
Memory maker Kioxia 285A.T tanked 8.92%.
"As the market eyes memory prices, the Nikkei is being influenced by South Korea's benchmark index, which is heavily weighted toward memory makers, such as SK Hynix," said Daiwa's Hashizume.
Shares in SK Hynix 000660.KS dropped as much as 8.2% in early trade in Seoul on Monday as investors booked profit, after a high-profile U.S. listing saw the world's leading AI memory chipmaker surge 12.8% in its Nasdaq debut on Friday.
Yaskawa Electric 6506.T tanked 14.34% after the robot maker's first-quarter net profit fell 21.7%.
Bank shares capped the Topix's decline. Mitsubishi UFJ Financial Group 8306.T and Sumitomo Mitsui Financial Group 8316.T rose more than 2% each.
Of more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 47% rose, 49% fell, and 3% traded flat.
