The Nikkei 225 Index fell 1.42% to close at 69,042 on Thursday, while the broader Topix Index declined 1.51% to 4,091, with both benchmarks extending losses for a second straight session. The downturn came as a sharp rise in oil prices, driven by renewed tensions between the US and Iran, reignited inflation concerns. Investor sentiment was further pressured by the latest FOMC minutes, which signaled a hawkish tilt among Federal Reserve policymakers and kept alive the prospect of additional rate hikes.
On the domestic front, Bank of Japan board member Ayano Sato—who dissented from the central bank’s rate hike in September—stated this week that she prefers a gradual, multi-stage approach to further interest rate increases. Her comments reinforced expectations that the BOJ may continue tightening policy.
Technology and banking shares led the broader market weakness, with notable declines in Taiyo Yuden (-4.4%), SoftBank Group (-4.3%) and Mitsubishi UFJ (-3.3%).
