Reuters

Japan’s Nikkei Stock Average Falls to One-Month Low as Middle East Conflict Intensifies

Yomiuri Shimbun file photo
The Tokyo Stock Exchange

Reuters

12:11 JST, March 4, 2026

TOKYO, March 4 (Reuters) – Japan’s Nikkei share average slipped on Wednesday to its lowest level in a month as investors sold risk assets amid an intensifying Middle East conflict.

The Nikkei .N225 fell 3.5% to 54,340.02 of 0215 GMT, marking its lowest point since February 6, and is on track for a third consecutive session of losses, if current momentum persists.

The broader Topix .TOPX lost 3.68% to 3,633.03.

“Investors sold down risk assets, and in particular, the Nikkei as well as the KOSPI, which outperform other major indexes, have become a target of the heavier selloff as they try to book profits,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

Shares in Seoul’s benchmark index .KS11 dived 7% on Wednesday.

Israeli and U.S. forces pounded targets across Iran on Tuesday, prompting Iranian retaliatory strikes around the Gulf as the conflict spread to Lebanon, rattled global markets, and sent oil prices sharply higher.

In Japan, chip-related heavyweights led the Nikkei’s decline, with Advantest 6857.T and Tokyo Electron 8035.T falling nearly 5% each. Technology investor SoftBank Group 9984.T lost 6.89%.

All 33 industry indexes slipped, with the oil refinery index .IPETE.T falling 7.65% to rank as the worst performer.

Investors scooped up beaten-down software-related shares. Baycurrent 6532.T jumped 5.7% and Shift 3697.T gained 1.84%.

The move is an exact mirror of the U.S. market where their peers such as Salesforce CRM.N rose overnight, IwaiCosmo’s Shimada said.

Shares of Nidec6594.T jumped 5.5% after the electric motor manufacturer warned that it could face 250 billion yen ($1.6 billion) in writedowns from a deepening accounting scandal that sparked the exit of its founder and other top executives.

Sony Group 6758.T rose nearly 1% and Nintendo 7974.T was up 1.37%.

Among the more than 1,600 stocks traded on the Tokyo Stock Exchange’s prime market, 92% fell, 6% advanced and 1% traded flat.