27.03.202600:59:04UTC+00Japanese Shares Track Wall Street Lower

The Nikkei 225 Index fell 1.8% to below 52,700 on Friday, while the broader Topix Index declined 0.9% to 3,610, extending the previous session’s losses. The weakness tracked a sharp selloff on Wall Street, as investors grew skeptical about the progress of negotiations to end the war involving Iran.

Sentiment was further rattled by reports that the US is considering deploying up to 10,000 additional ground troops to the Middle East. At the same time, President Donald Trump extended by 10 days his deadline for Iran to reach a deal or face additional attacks.

Market participants remained cautious amid contradictory headlines from the region. Elevated oil prices added to inflation worries and reinforced expectations of further interest rate hikes this year.

Technology and AI-related names led the downturn, with notable declines in Kioxia Holdings (-7.1%), Fujikura (-4.7%), Advantest (-5.1%), Disco Corp (-3.5%), and Tokyo Electron (-4.4%).