The Nikkei 225 Index declined 1.4% to around 53,700 on Friday, while the broader Topix Index slipped 1% to 3,612, marking a second consecutive session of losses. The weakness tracked the overnight selloff on Wall Street as oil prices surged amid escalating disruptions from the war in the Middle East.
Crude prices rallied after Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz effectively closed and stepped up attacks on regional oil and transport infrastructure.
At the same time, Bank of Japan Governor Kazuo Ueda warned that further yen depreciation could amplify imported inflation as oil prices climb, potentially forcing the central bank to quicken the pace of policy normalization.
Technology and consumer shares led the decline, with notable losses in Kioxia Holdings (-4.5%), Advantest (-3%), SoftBank Group (-4.9%), Fast Retailing (-1.5%), and Toyota Motor (-2.1%). Both the Nikkei and the Topix are on course for a second straight weekly drop.
