The Nikkei 225 Index fell 0.8% to around 66,700 on Tuesday, declining for a second straight session and hitting its lowest level in a month, as escalating tensions in the Middle East undermined investor sentiment. President Donald Trump reinstated a blockade on Iranian vessels transiting the Strait of Hormuz, sending oil prices sharply higher and pressuring global equities amid renewed concerns that central banks may need to raise interest rates to contain inflation.
Japanese stocks also tracked a tech-led selloff on Wall Street overnight, with chipmakers facing heavy selling pressure amid growing doubts about the sustainability of the artificial intelligence trade. Technology and AI-related shares led the declines in Japan, including Kioxia Holdings (-1.5%), Taiyo Yuden (-2.3%), Murata Manufacturing (-3.1%), SoftBank Group (-2.2%), and Fujikura (-6.7%).
