Japan’s Nikkei Stock Average Shares Pare Gains on Doubts over Trump’s Iran Remarks (UPDATE 1)

Reuters

12:54 JST, March 24, 2026 (updated at 17:00 JST)

TOKYO, March 24 (Reuters) – Japanese shares pared gains on Tuesday as investors remained unconvinced that U.S. President Donald Trump’s comments about holding off on targeting Iran’s energy infrastructure would lead to a breakthrough in the Middle East conflict.

The Nikkei rose 1.4% to close at 52,252.28 after rising as much as 2.3% earlier in the session. The broader Topix climbed 2.1% to 3,559.67 after jumping as much as 2.6%.

Trump postponed a threat to bomb Iran’s power grid because of what he described as “productive talks” with unidentified Iranian officials. Iran denied that it had engaged in negotiations with the U.S., pushing oil prices higher, and launched multiple waves of missiles at Israel.

“Few investors seem to believe the remarks will help calm the situation around the Strait of Hormuz, and many see them as little more than a temporary delaying tactic,” said Tomoichiro Kubota, senior market analyst at Matsui Securities. “So when the market rises, they are quick to take profits.”

The Nikkei benchmark gauge has lost about 11% since its February 27 close, before the war erupted.

On Tuesday, there were 209 advancers on the Nikkei index against 16 decliners.

Pharmaceutical stocks underpinned the Nikkei’s gains, with Sumitomo Pharma rising 7.4%. Energy-related shares also rose, including Eneos, Japan’s largest oil refiner, which advanced 4.1%.

Tokio Marine Holdings closed up 17.1% at its daily limit high of 6,857 yen after Berkshire Hathaway said it was buying a 2.49% stake in the Japanese insurer for about $1.8 billion as part of a new strategic partnership.

The Nikkei’s biggest percentage decliner was Nintendo, down 4.8%, after Bloomberg reported that the game maker would slash Switch 2 output by more than 30% this quarter due to weak U.S. sales. Japan Steel Works also lost 3.3%, while Mitsubishi Heavy Industries declined 1.9%.