Business Recorder
TOKYO: Japan’s Nikkei share average retreated on Thursday after a sharp rally in the previous session, as initial euphoria over a two-week fragile ceasefire in the Middle East gave way to a more cautious market outlook. Investor sentiment weakened after Israel launched its heaviest strikes yet on Lebanon on Wednesday, killing hundreds of people and prompting threats of retaliation from Iran. Tehran also signalled it would be “unreasonable” to continue negotiations for a permanent peace deal with the United States. The Nikkei fell 0.73% to 55,895.32, snapping a four-session rally. The broader Topix slipped 0.9% to 3,741.47. Nikkei 225 Futures on the Chicago Mercantile Exchange crossed the 57,000 level overnight. In the previous session, the Nikkei surged 5.4% to its highest point in more than one month on hopes the Strait of Hormuz would reopen after US President Donald Trump agreed to a two-week ceasefire with Iran. The six-week conflict had brought traffic through the strait, a chokepoint for about 20% of global oil and liquefied natural gas shipments, close to a standstill, pushing global energy prices sharply higher. “Investors have turned calm and started thinking if the peace talks will really work,” said Takamasa Ikeda, senior portfolio manager at GCI Asset Management. “Oil prices rose again, and that weighed on the equities market.” Chipmakers and artificial intelligence-related shares slipped, with Advantest and SoftBank Group down 1.67% and 1.23%, respectively. Shares of Fast Retailing, the parent company of Uniqlo, reversed early gains to end 0.46% lower. Of the more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 18% rose, 80% declined, and 1% traded flat.
Go to News Site