FX.co ★ Japanese Shares Wobble as Mideast Ceasefire Weighed

On Wednesday, the Nikkei 225 inched up by 0.1%, reaching just over 38,800, whereas the broader Topix Index saw a decline of 0.2%, settling at 2,776. This fluctuation occurred amid ongoing geopolitical tensions, leading to uncertainty in Japanese equity markets. Investors are assessing the sustainability of the ceasefire between Iran and Israel, facilitated by the United States, amid reports indicating that recent U.S. missile strikes did not entirely eliminate Iran's critical nuclear sites. Additionally, market participants are considering recent remarks from Federal Reserve Chair Powell, who reiterated that the Fed remains committed to managing inflation, suggesting that interest rates will likely stay unchanged until the effects of new tariffs are better understood. Domestically, the Bank of Japan's latest Summary of Opinions reflected the cautious approach of policymakers regarding further economic policy adjustments due to the persistent uncertainty surrounding the economic outlook. In terms of individual stocks, chip equipment manufacturers such as Advantest and Tokyo Electron experienced notable increases of 2.3% and 2.7% respectively. Conversely, SoftBank Group declined by 2.2%, and Metaplanet experienced a significant drop of 10.1%, negatively impacting the market.