FX.co ★ Japanese Shares Drop as Oil Prices Surge

The Nikkei 225 Index fell 1.06% to close at 59,285, while the broader Topix Index declined 1.19% to 3,727 on Thursday, extending the previous session’s losses. The market came under pressure as oil prices climbed following reports that the US military would brief President Trump on potential action against Iran, heightening fears of an escalation in the conflict. Trump also reiterated that the US would maintain its naval blockade on Iran until a nuclear agreement is reached, adding to concerns. Japan’s heavy reliance on Middle Eastern oil imports further weighed on sentiment.

Meanwhile, the Federal Reserve left its policy rate unchanged, as widely expected, though four policymakers dissented from the decision. On the domestic front, data showed that Japan’s industrial production unexpectedly declined in March, while retail sales exceeded expectations. Notable losses were seen among major index constituents, including Advantest (-5%), Fujikura (-4.9%), Mitsubishi UFJ (-2%), Mitsubishi Heavy Industries (-3.8%), and Hitachi (-3.3%).