Tokyo Stocks End Thursday Lower

(MENAFN) Tokyo equity markets closed in the red Thursday, surrendering earlier advances as mounting anxiety over the trajectory of the Middle East conflict drove investors toward caution.

The Nikkei 225 — Japan's primary benchmark index — shed 145.97 points, or 0.27 percent, to settle at 53,603.65, reversing Wednesday's close. The broader Topix index mirrored the decline, falling 8.19 points, or 0.22 percent, to finish at 3,642.80.

Across the Prime Market's top tier, losses were concentrated in insurance, electric appliances, banking, and glass and ceramics sectors, which emerged as the session's most significant underperformers.

The trading day had begun on a markedly different note. Tokyo shares opened firmly higher, riding momentum from overnight advances on Wall Street, with sentiment lifted by growing optimism that US-Iran diplomatic talks could bring an end to the conflict that erupted in late February.

The rally, however, proved short-lived. Both the Nikkei and Topix slid into negative territory as profit-taking pressures mounted — a natural pullback after the Nikkei surged over 2,200 points across just the prior two sessions.

Market analysts pointed to the unresolved Middle East situation as the key headwind keeping investors on the sidelines, reluctant to commit to fresh positions. While the broader geopolitical picture showed tentative signs of improvement, a prevailing undercurrent of wariness continued to temper any decisive bullish move.

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