And he continued Nikkei indicator Its losses fell 2.18 percent to the lowest closing level in a week at 37,808.76 points, while the broader Topix index fell 1.4 percent to 2,651.96 points.
Iran launched ballistic missiles at IsraelYesterday, Tuesday, Israeli Prime Minister Benjamin Netanyahu vowed that Iran would pay the price for this. Tehran said any retaliation would be met with “massive destruction,” raising fears of a broader war.
“The escalation in the Middle East has led to a traditional reaction from investors, which poses obstacles for Japanese stocks in general,” Charu Chanana, global market analyst and head of foreign exchange strategies at Saxo, told Reuters.
Japanese technology sector stocks topped losses, tracking their American counterparts, after the Philadelphia Semiconductor Index fell by about three percent last night.
The three major stock indices on Wall Street closed lower on Tuesday, with the Nasdaq index falling by more than 1 percent amid widespread risk aversion following news of the Iranian attack.
Shares of electronic chip companies Tokyo Electron fell 3.7 percent and Advantest fell 4.8 percent, while shares of SoftBank Group, which invests in emerging artificial intelligence companies, fell 2.4 percent.
Shares of defense companies, which were among the few winners in early trading, witnessed selling, including Kawasaki Heavy Industries, which fell 0.6 percent.
Of the 225 stocks listed on the index, 187 of them fell in trading.
Shares of Fast Retailing, owner of the Uniqlo brand, fell by about four percent, becoming the biggest loser in the index.
On the other hand, energy stocks rose supported by rising oil prices in the Middle East amid fears that the conflict in the Middle East may disrupt supplies. Inpex shares rose 4.41 percent, achieving the best performance.
Shares of oil and coal companies were among the best performing sectors, jumping 2.2 percent, behind mining companies, which advanced 4.3 percent.
