Japan’s Nikkei Stock Average Falls on Higher Oil, Fears of Prolonged Middle East War

Reuters

13:04 JST, March 12, 2026

TOKYO, March 12 (Reuters) – Japan’s Nikkei share average fell on Thursday as global oil prices resumed their climb, while concerns grew that the U.S.-Israeli war with Iran could drag on.

The Nikkei was down 1.3% at 54,307.84 as of 0218 GMT, and the broader Topix slipped 1.47% to 3,644.32.

“The market is betting that the war will be prolonged,” said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.

“The oil prices rose, and that prompted investors to sell stocks.”

Oil prices climbed on Thursday after Iraqi security officials said Iranian explosive-laden boats had hit two fuel oil tankers amid other global supply disruptions from the U.S.-Israeli war on Iran.

Japan, which is dependent on the Middle East for around 95% of its oil supplies, said it would release about 80 million barrels of oil from its strategic reserves, equivalent to 45 days of supply, to mitigate global disruptions.

Technology stocks fell, with Advantest and SoftBank Group losing 2.47% and 3.06%, respectively. Tokyo Electron fell 1.85%.

All but two of the Tokyo Stock Exchange’s 33 industry sub-indexes dropped, with the real estate sector losing 3.3% to become the worst performer. The mining sector inched up 0.17%.

Bucking the broader market trend, Kyoto Financial Group jumped 7.4% after the bank more than doubled its annual net profit forecast, citing profits from the sale of Nintendo shares. It also expanded its share buyback plans.

Shares of Nidec rose 3.46% after a government filing showed activist investor Oasis Management held a 6.74% stake in the scandal-hit electric motor maker.

Shares of heavy machinery makers rose, with Kawasaki Heavy Industries and Mitsubishi Heavy Industries rising 3.76% and 2.06%, respectively.