The Nikkei 225 Index fell 1.12% to close at 56,826, while the broader Topix Index declined 1.13% to 3,808 on Friday, ending a two-day rally as escalating US–Iran tensions undermined risk appetite. Trump warned that Iran had no more than 15 days to reach a deal over its nuclear program or face consequences.
Sentiment was further pressured by caution ahead of key US economic data releases that could influence expectations for future Federal Reserve policy moves.
On the domestic front, data showed that both headline and core inflation in Japan eased in January, reflecting the impact of government measures aimed at alleviating cost-of-living pressures.
Technology and banking shares led the decline, with notable losses in Kioxia (-3.3%), Advantest (-2%), Tokyo Electron (-1.5%), Mitsubishi UFJ Financial Group (-2.2%), and Mizuho Financial Group (-1.8%). In corporate news, Sumitomo Pharma tumbled 15.6%, likely on profit-taking following the company’s conditional approval for its regenerative therapy.
Despite Friday’s pullback, both benchmark indexes were on track to finish the week broadly unchanged.
