FX.co ★ Japanese Shares Ease From Record Levels

The Nikkei 225 Index fell 0.6% to around 66,500, while the broader Topix Index declined 0.7% to 3,913 on Tuesday, as Japanese equities eased slightly from record highs amid persistent geopolitical uncertainty. Reports indicated that Tehran had suspended talks with Washington in response to Israeli strikes in Lebanon, though President Donald Trump said negotiations were still in progress.

On the domestic front, markets are now pricing in roughly a 78% chance that the Bank of Japan will raise interest rates again later this month, as inflationary pressures linked to the Middle East conflict continue to mount.

Among individual names, notable losers included Taiyo Yuden (-4.6%), Fujikura (-2.5%), Furukawa Electric (-2.0%), Mitsubishi Heavy Industries (-4.8%) and Toyota Motor (-2.8%). In contrast, SoftBank Group jumped another 5%, extending its gains after a technology-driven rally on Wall Street following the launch of a new PC chip.