Published on 09/08/2026 at 03:24 am EDT
(Reuters) - Japanese shares fell sharply on Tuesday as renewed geopolitical tensions damped risk sentiment and a sudden surge in the yen weighed on exporters.
The benchmark Nikkei 225 index slid 1.7% to close at 65,269.33. The broader Topix slipped 1.83% to 4,050.33.
Iran escalated threats against the United States and said it had fired an advanced missile at U.S. warships, keeping oil prices near multi-week highs.
With inflation pressures mounting, markets are pricing a near-certain Bank of Japan rate hike to 1.25% next week. The prospect of tighter monetary policy has boosted the yen, which strengthened to 152.89 per dollar, its highest level since February.
"It appears as though the run-up in oil prices is impacting Japanese shares," said Maki Sawada, an equities strategist at Nomura Securities. "This appreciation of the yen is also weighing on the market."
In Topix sector moves, glass makers and transportation equipment were the biggest laggards, down 4.44% and 4.14%, respectively.
Decliners outnumbered advancers in the Nikkei 225, with 165 stocks falling, 59 rising, and one traded flat.
JTEKT was the benchmark index's biggest loser, tumbling 8.68% for its sharpest one-day drop since August 2024. Alps Alpine fell 8.29%, while Okuma lost 7.99%.
The largest percentage gainer in the index was Nitori Holdings, which benefits from a stronger yen as it manufactures most of its household goods overseas for sale in Japan. It surged 5.47%, marking its highest close since February.
(Reporting by Rocky Swift in Tokyo; Editing by Rashmi Aich and Sherry Jacob-Phillips)

Sumber : Reuters