FX.co ★ Japanese Shares Fall as Oil Resumes Rally

The Nikkei 225 Index declined 1.1% to around 54,400 on Thursday, while the broader Topix Index lost 1.3% to 3,650, ending a two-session rebound as the renewed surge in oil prices stoked fresh inflation concerns. Crude rose for a second straight day amid no clear signs of de-escalation in the Iran war, even after the International Energy Agency approved its largest-ever emergency release of 400 million barrels. Of that, 172 million barrels will come from the US, and Japan will contribute 80 million barrels from its own reserves. Japan remains highly exposed to oil supply disruptions due to its heavy dependence on Middle Eastern crude imports. Major index constituents were under pressure, with notable declines in Advantest (-2.6%), SoftBank Group (-3.3%), JX Advanced Metals (-1.4%), Mitsubishi UFJ (-1.3%), and Tokyo Electron (-1.4%).