Japanese equities declined for a second consecutive day on Thursday, as the Nikkei 225 retreated 1.42% to close at 69,042 and the Topix index decreased 1.51% to reach 4,091.
The downturn materialized amid escalating oil prices, propelled by heightened geopolitical risks stemming from renewed US-Iran friction, which amplified anxieties surrounding inflationary pressures. Investor sentiment also remained guarded following the release of recent Federal Reserve minutes, signaling a policy stance inclined toward tightening monetary conditions and the potential for additional interest rate adjustments.
In Japan, Bank of Japan policymaker Ayano Sato indicated support for a measured strategy regarding interest rate increases, noting that additional policy adjustments may occur incrementally. Equities in the technology and financial sectors experienced significant declines. Taiyo Yuden's shares decreased by 4.4%, SoftBank Group’s stock retreated 4.3%, and Mitsubishi UFJ's value diminished 3.3%.