The Nikkei 225 Index slipped 0.1% to below 53,800, while the broader Topix Index declined 0.2% to 3,620 on Monday, as Japanese equities struggled to gain momentum amid ongoing uncertainty in the Middle East and volatile oil prices.
Over the weekend, the US struck military targets on Iran’s main oil export hub, Kharg Island, and reports indicate Washington will soon announce a coalition of countries to escort commercial vessels through the Strait of Hormuz. A senior Japanese official stated that the threshold for Tokyo to deploy warships to help secure vital Middle Eastern oil shipping lanes is “extremely high.”
At the same time, the Bank of Japan is widely expected to keep its policy rate unchanged this week, reflecting heightened uncertainty over how the conflict with Iran could affect Japan’s domestic economy.
Among notable losers, Nintendo fell 1.8%, Fujikura dropped 2%, and Lasertec declined 2.1%.
