The Nikkei 225 Index rose 0.3% to around 59,900 on Monday, while the broader Topix Index edged down 0.3% to 3,705, underscoring a lack of clear market direction as oil prices climbed following stalled US–Iran peace efforts. President Donald Trump canceled plans to send senior envoys to Pakistan for a second round of talks with Iran, and Tehran reiterated it would not negotiate under threats or blockade conditions.
Market sentiment was further tempered by caution ahead of this week’s Bank of Japan policy meeting, where interest rates are widely expected to be left unchanged as policymakers assess the economic fallout from the Middle East conflict.
In corporate news, Nomura Holdings dropped more than 5% after missing fourth-quarter profit expectations, weighed down by writedowns and a loss in its European operations. By contrast, Denso gained nearly 4% after indicating it may withdraw its takeover proposal for Rohm, which slumped 13%.