The Nikkei 225 Index declined 1.3% to below 68,500, while the broader Topix Index lost 0.5% to 3,944 on Monday, marking a second straight session of losses as investors tracked escalating tensions in the Middle East. Oil prices rose following renewed clashes between the US and Iran near the Strait of Hormuz, though both sides agreed to halt further attacks ahead of peace talks scheduled this week in Doha, Qatar.
On the domestic front, data showed that Japan’s retail sales climbed 5.3% in May, the fastest pace since November 2023, largely driven by a government stimulus package that bolstered consumer spending. Technology shares led the market lower amid growing doubts about the durability of the AI-fueled rally, with sharp declines in Kioxia (-8.8%), SoftBank Group (-5.2%), Fujikura (-7.7%), Advantest (-5.7%), and Ibiden (-7.5%).
