Japan's Nikkei set for worst week in over a month amid Middle East uncertainty
EWJ•Fast Retailing falls as shipping stocks gain
Heavily weighted Uniqlo operator Fast Retailing 9983.T slumped 4% and was a major factor in the Nikkei's losses.
AI-focused startup investor SoftBank Group 9984.T sank 1.3%.
Overall, the Nikkei's performance was fairly balanced, with 119 of its 225 components falling, 103 rising and three trading flat.
Shipping .ISHIP.T was the top performer among the Tokyo Stock Exchange's 33 industry groups, rallying 2.8% amid expectations for higher freight rates, with the crucial Strait of Hormuz shipping route remaining effectively closed.
Nikkei heads for its worst week in more than a month
Tokyo stocks were weaker on Friday, putting Japan's Nikkei share average on course for its worst week in more than a month as uncertainty surrounding the Middle East conflict lifted oil prices and fanned inflation fears.
The Nikkei .N225 eased 0.3% as of the midday recess, setting up a 4% weekly loss, the biggest since the week ended July 17.
The broader Topix .TOPX declined 0.1%, on track for a 3.4% weekly slide.
Oil, bond yields and profit-taking weigh on sentiment
The U.S. will impose "the toughest sanctions in history" on Iran, Treasury Secretary Scott Bessent said on Thursday, as Washington ramped up economic threats in a bid to end the nearly six-month-old war. Crude oil jumped about $2 overnight. O/R
Inflation concerns lifted Japanese bond yields, with the 10-year government note's yield JP10YTN=JBTC rising 3 basis points to 2.875% on Friday. Yields rise when bond prices fall. JP/
"Profit taking is likely heading into the weekend with oil prices and bond yields elevated amid the uncertain situation in the Middle East," said Maki Sawada, a strategist at Nomura Securities.
