FX.co ★ Japanese Shares Struggle on MidEast Tensions

The Nikkei 225 Index slipped 0.2% to around 68,400 on Monday, while the broader Topix Index advanced 0.6% to 4,060, reflecting mixed trading as Japanese equities struggled for clear direction. Heightened tensions in the Middle East kept inflation risks and prospects for further interest-rate hikes in focus. Over the weekend, the US and Iran exchanged new missile strikes amid continuing disputes over shipping in the Strait of Hormuz, pushing oil prices higher.

Investors are also bracing for a heavy week of corporate earnings on Wall Street, which will be a key test of whether the artificial intelligence–driven market rally can be sustained by solid fundamentals. On the Tokyo market, Kioxia Holdings (-1.8%), Taiyo Yuden (-4.8%), and Yaskawa Electric (-14.2%) were among the notable decliners, while SUMCO Corp (+7.9%), SoftBank Group (+2%), and Mitsubishi UFJ (+2.4%) recorded strong gains.