Japan's Nikkei Index fell 0.19% amid Middle East energy tensions and rising oil prices
Asian markets closed in mixed sessions as geopolitical risks from the Middle East overshadowed domestic economic signals, pushing investor sentiment lower.
Japanese stock markets closed on Wednesday with declining gains following mixed signals regarding Bank of Japan interest rate hikes. The Nikkei Index dropped 0.19% to close at 65,142.78 points after rising up to 0.8% earlier in the trading session. The broader Topix Index retreated by 0.09%, ending at 40,466.4 points. This reversal in market direction followed escalating geopolitical tensions in the Middle East. Iran launched ballistic missiles at a U.S.-used Jordanian military base and attacked several ships after Washington stated it had destroyed Iranian oil tankers. These actions have renewed fears of rising energy prices and inflation. Higher oil costs pose a direct threat to Japan, which relies heavily on imported fuel. Traders reassessed energy risk premiums as the conflict intensified outside Asia.
