Japan’s Nikkei Stock Average Falls on Geopolitical Worries as Israel Attacks Iran (UPDATE 1)

Reuters

10:45 JST, June 13, 2025 (updated at 16:55 JST)

TOKYO, June 13 (Reuters) – Japan’s Nikkei share average fell on Friday as investors sold riskier assets after Israel launched widescale strikes against Iran, stoking worries about geopolitical risks.

The Nikkei .N225 fell 0.89% to close at 37,834.25, mirroring moves in U.S. stock futures, but posted a 1.14% gain for the week.

The broader Topix .TOPX fell 0.95% to 2,756.47 and gained 0.5% for the week.

“The market was selling stocks on caution for geopolitical risks, but the news was not driving a fire sale because investors still wanted to monitor the development of the attacks,” said Naoki Fujiwara, a senior fund manager at Shinkin Asset Management.

Israel launched strikes against Iran on Friday, saying it targeted nuclear facilities, ballistic missile factories and military commanders, and that this was the start of a prolonged operation to prevent Tehran from building an atomic weapon.

Chip-making equipment maker Tokyo Electron 8035.T fell 4.8%, dragging the Nikkei the most. Uniqlo-brand owner Fast Retailing 9983.T lost 1.61%.

Exporters fell as the yen strengthened, with Toyota Motor 7203.T and Nissan Motor 7201.T falling 2.35% and 1.26%, respectively.

Energy sectors rose as oil prices jumped. Oil explorers .IMING.Tjumped 2.77% to become the top performer among the Tokyo Stock Exchange’s 33 industry sub-indexes.

Oil refiners .IPETE.T gained 1.61% and the utility sector .IEPNG.T gained 1.17%.

Defense-related shares also rose, with Mitsubishi Heavy Industries 7011.T and IHI7013.T rising 2%, respectively.

Of more than 1,600 stocks trading on the TSE’s prime market, 17% rose and 79% fell, with 2% trading flat.