FX.co ★ Japanese Shares Pull Back from Record Highs

The Nikkei 225 Index slipped 0.25% to close at 64,996, while the broader Topix Index edged down 0.1% to 3,938 on Tuesday. Both benchmarks pulled back from record highs as investors took profits and tracked the latest developments in the Middle East. The US military reportedly struck missile launch sites and vessels suspected of attempting to lay mines in southern Iran, even as President Donald Trump said talks with Tehran were progressing well.

Domestically, Bank of Japan Deputy Governor Ryozo Himino reaffirmed the central bank’s commitment to further interest rate increases, emphasizing that the timing and pace would depend on how the Middle East conflict influences Japan’s economic activity and inflation outlook.

Technology and artificial intelligence-related shares, which led Monday’s rally, declined, with notable losses in Kioxia Holdings (-4.6%), Fujikura (-4%), and Advantest (-6.1%). By contrast, SoftBank Group jumped another 10.9%, bringing its gains to more than 50% over the past four sessions.