Japan Indexes Recovered Led by Global Tech Rebound and BoJ Governor Comments

Stocks in Japan advanced on Thursday, recovering losses from earlier in the week and supported by a tech-driven rebound in overnight trading in New York. 

The Nikkei 225 Stock Average increased 1.9%, and the broader Topix Index soared 2.2% despite the Middle East conflict showing no signs of easing. 

Brent crude oil prices jumped 3.1% to $83.95 a barrel as the U.S., Israel, and Iran stepped up airstrikes. Moreover, Saudi Arabia and the UAE declared war on Iran following several Iranian missile and drone strikes. 

The conflict in the Middle East shows no signs of ending, and at least twelve nations are involved, including Jordan, Oman, Kuwait, Bahrain, Saudi Arabia, Qatar, and the UAE.

The Strait of Hormuz, a key passage for the transport of energy products to Asia, remained closed for the third consecutive day as the bomb strikes raged on along the narrow pathway.

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 1.9% to 55,276.61, and the broader TOPIX Index gained 2.2% to 3,712.29. 

Nippon Yusen increased 2.2% to ¥5,511.0, Mitsui O.S.K. Lines gained 2.1% to ¥6,034.0, and Kawasaki Kisen Kaisha added 3.3% to ¥2,609.0. 

Technology stocks led the market's advance in Tokyo after Bank of Japan Governor Kazuo Ueda said escalating tensions in the Middle East could materially dent Japan's economy, indicating that policymakers may keep interest rates unchanged for a prolonged period of time. 

SoftBank Group gained 4.2% to ¥3,864.0, Tokyo Electron added 2.5% to ¥41,720.0, and Lasertec Corp. gained 1.4% to ¥33,550.0.

China Indexes Attempted to Rebound Amid as Policymakers Set Growth Targets

Stocks in China rebounded, tracking gains in overnight trading in New York, and crude oil prices extended their gains amid ongoing conflict in the Middle East.

The Hang Seng Index increased 0.8%, and the mainland-focused CSI 300 Index advanced 1.3% as investors set aside worries of the U.S.-Iran conflict engulfing more nations in the region. 

China's National People's Congress set the gross domestic product growth target for 2026 between 4.5% and 5.0% at the start of the annual parliamentary session in Beijing. 

China's policymakers set a lower economic growth target as they shifted their focus to technological innovation and high-value-added activities.

China Indexes and Stocks 

The Hang Seng Index increased 0.8% to 25,462.30, and the CSI 300 Index advanced 1.3% to 4,662.81. 

Cosco Shipping Holdings increased 2.8% to HK $15.99, China Merchants Port Holdings advanced 2.6% to HK $17.15, and Overseas International gained 2.6% to HK $156.80. 

China Indexes Attempted to Rebound Amid as Policymakers Set Growth Tar

Stocks in China rebounded, tracking gains in overnight trading in New York, and crude oil prices extended their gains amid ongoing conflict in the Middle East.

The Hang Seng Index increased 0.8%, and the mainland-focused CSI 300 Index advanced 1.3% as investors set aside worries of the U.S.-Iran conflict engulfing more nations in the region. 

China's National People's Congress set the gross domestic product growth target for 2026 between 4.5% and 5.0% at the start of the annual parliamentary session in Beijing. 

China's policymakers set a lower economic growth target as they shifted their focus to technological innovation and high-value-added activities.

China Indexes and Stocks 

The Hang Seng Index increased 0.8% to 25,462.30, and the CSI 300 Index advanced 1.3% to 4,662.81. 

Cosco Shipping Holdings increased 2.8% to HK $15.99, China Merchants Port Holdings advanced 2.6% to HK $17.15, and Overseas International gained 2.6% to HK $156.80. 

Middle East Conflict Adds Another Layer of Uncertainty for Investors and Central Banks

U.S. stocks extended their losses for the third day this week as investors weighed the impact of higher oil prices on the U.S. economy and future monetary policy outcomes.

The S&P 500 index decreased 0.4%, and the tech-heavy Nasdaq Composite declined 0.5% as war in the Middle East intensified. 

Crude oil prices hovered near $75 a barrel, and natural gas prices traded around $3 per MMBtu as the U.S., Israel, and Iran exchanged air attacks. 

Gold futures prices rose 2% to $5,197 an ounce and extended a three-day increase to 10% as the U.S.-Iran conflict entered its fifth day and the outcome remained uncertain. 

Iran stepped up retaliatory strikes and directed its drone and missile attacks to neighboring nations, including the UAE, Saudi Arabia, Kuwait, and Qatar.

The rapidly shifting military situation in Iran and the Middle East roiled markets as far as in India, Japan, China, and South Korea.

Benchmark indexes in Seoul plunged 12%, in Tokyo dropped 4%, in Hong Kong fell 2%, and in Mumbai eased 1.4%. 

Market indexes in Europe attempted to rebound between 1% and 2% and reversed the two-day decline of as much as 5%.

U.S. Movers 

Ahead of earnings results later today, Abercrombie & Fitch advanced 4%, Okta inched higher 0.4%, and Broadcom Inc. edged up 1.3%. 

ConocoPhillips, Chevron, and Exxon Mobil declined around 1% amid worries that the U.S. energy companies' oil fields and assets could be vulnerable in the Middle East.

Middle East Conflict Adds Another Layer of Uncertainty for Investors and Central Banks

U.S. stocks extended their losses for the third day this week as investors weighed the impact of higher oil prices on the U.S. economy and future monetary policy outcomes.

The S&P 500 index decreased 0.4%, and the tech-heavy Nasdaq Composite declined 0.5% as war in the Middle East intensified. 

Crude oil prices hovered near $75 a barrel, and natural gas prices traded around $3 per MMBtu as the U.S., Israel, and Iran exchanged air attacks. 

Gold futures prices rose 2% to $5,197 an ounce and extended a three-day increase to 10% as the U.S.-Iran conflict entered its fifth day and the outcome remained uncertain. 

Iran stepped up retaliatory strikes and directed its drone and missile attacks to neighboring nations, including the UAE, Saudi Arabia, Kuwait, and Qatar.

The rapidly shifting military situation in Iran and the Middle East roiled markets as far as in India, Japan, China, and South Korea.

Benchmark indexes in Seoul plunged 12%, in Tokyo dropped 4%, in Hong Kong fell 2%, and in Mumbai eased 1.4%. 

Market indexes in Europe attempted to rebound between 1% and 2% and reversed the two-day decline of as much as 5%.

U.S. Movers 

Ahead of earnings results later today, Abercrombie & Fitch advanced 4%, Okta inched higher 0.4%, and Broadcom Inc. edged up 1.3%. 

ConocoPhillips, Chevron, and Exxon Mobil declined around 1% amid worries that the U.S. energy companies' oil fields and assets could be vulnerable in the Middle East.

Japan's Indexes Extended Weekly Losses to 10% as U.S.-Iran Conflict Drags On

Japan's indexes declined for the third day in a row as the surge in oil prices dampened market sentiment across Asia.

The Nikkei 225 Stock Average fell nearly 4%, the broader Topix dropped 3.6%, and the yen weakened to 157.45 against the U.S. dollar.

Investors are increasingly factoring in the possibility of a prolonged U.S.-Iran conflict expanding to the wider group of nations in the Middle East.

Investors worried that the higher energy prices could stoke worldwide inflation and slow down economic growth and disrupt energy supplies for a prolonged time.

Japan Indexes and Stocks

The Nikkei 225 Stock Average dropped 3.7% to 54,220.74, and the broader Topix decreased 3.6% to 3,637.59.

Benchmark indexes extended this week's losses to over 10% following the start of war in the Middle East. 

Nippon Yusen KK decreased 3.5% to ¥5,376.0, Mitsui O.S.K Lines dropped 2.8% to ¥5,887.0, and Kawasaki Kisen Kaisha Ltd fell 2.4% to ¥2,508.0. 

Toyota Motor, Honda Motor, and Nissan Motor fell between 4% and 7%, and Hitachi, Komatsu, and Nippon Steel declined between 4% and 6%. 

Tokyo Electron, Advantest Corp., and SoftBank Group plunged between 5% and 9%.

Japan's Indexes Extended Weekly Losses to 10% as U.S.-Iran Conflict Dragged On

Japan's indexes declined for the third day in a row as the surge in oil prices dampened market sentiment across Asia.

The Nikkei 225 Stock Average fell nearly 4%, the broader Topix dropped 3.6%, and the yen weakened to 157.45 against the U.S. dollar.

Investors are increasingly factoring in the possibility of a prolonged U.S.-Iran conflict expanding to the wider group of nations in the Middle East.

Investors worried that the higher energy prices could stoke worldwide inflation and slow down economic growth and disrupt energy supplies for a prolonged time.

Japan Indexes and Stocks

The Nikkei 225 Stock Average dropped 3.7% to 54,220.74, and the broader Topix decreased 3.6% to 3,637.59.

Benchmark indexes extended this week's losses to over 10% following the start of war in the Middle East. 

Nippon Yusen KK decreased 3.5% to ¥5,376.0, Mitsui O.S.K Lines dropped 2.8% to ¥5,887.0, and Kawasaki Kisen Kaisha Ltd fell 2.4% to ¥2,508.0. 

Toyota Motor, Honda Motor, and Nissan Motor fell between 4% and 7%, and Hitachi, Komatsu, and Nippon Steel declined between 4% and 6%. 

Tokyo Electron, Advantest Corp., and SoftBank Group plunged between 5% and 9%.