Global Markets | Japan’s Nikkei falls as tensions between the US and Iran unsettle investors

Japan’s Nikkei shares fell on Friday as increased tensions between the US and Iran and a sell-off in US private equity shares hurt sentiment.The Nikkei fell 1.1% to close at 56,825.70, breaking a two-week rally and posting a weekly decline of 0.2%. The broader Topix fell 1.1% to 3,808.48 and is down 0.3% for the week. US President Donald Trump warned Iran that it must make a deal on its nuclear program or “really bad things will happen” and set a deadline of 10 to 15 days, drawing a threat from Tehran to retaliate against US bases in the region if they are attacked.

“With a three-day weekend looming (in Japan), there is an attempt to lock in gains for now amid concerns that something could happen between the US and Iran during the holiday,” said Yutaka Miura, senior technical analyst at Mizuho Securities.

Japanese airlines Japan Airlines lost 3.1% and ANA Holdings lost 2.7%. In addition, Blue Owl Capital’s announcement of asset sales and suspension of redemptions at one of its funds dragged the Japanese market, where the securities sector led declines in the Tokyo Stock Exchange’s 33 sub-indexes.

Internet banker SBI ‌Holdings fell 4%, the sharpest decline since last December. Nomura Holdings, Japan’s largest brokerage firm, fell 3.7%. Meanwhile, shares of drugmaker Sumitomo Pharma fell nearly 16%, the biggest drop since February 2024, due to profit-taking.

In choppy trading earlier on Friday, shares had risen as much as 6.8% after a Japanese Health Ministry panel approved the drugmaker’s iPS cell-derived treatment for Parkinson’s disease late Thursday.

The stock’s 14-day relative strength index (RSI) reached 74.8 on Tuesday. A figure above 70 indicates that the price gain is overextended.

There were 58 advancers on the Nikkei index, compared to 166 decliners.