Japan’s Nikkei 225 Index declined 0.5% to slip below 65,000 on Tuesday, while the broader Topix Index edged down 0.1% to 3,938. Both benchmarks pulled back from record highs as investors monitored diplomatic efforts to resolve the US-Iran conflict. President Donald Trump said talks were “going very well” but cautioned that new strikes could follow if negotiations break down, while a Pakistani mediator reportedly told Chinese officials that a deal was close. A full reopening of the Strait of Hormuz would also help ease pressure on major Asian economies that are heavily dependent on Middle Eastern oil imports.
Technology and artificial intelligence-related stocks, which powered Monday’s rally, retreated, with notable declines in Kioxia Holdings (-3.5%), Fujikura (-4%), and Advantest (-4.9%). In contrast, SoftBank Group jumped another 6% and has now gained nearly 50% over four sessions, buoyed by reports that two of its portfolio companies, OpenAI and SB Energy, are moving closer to US initial public offerings.
