The Nikkei 225 Index fell 1.2% to below 53,200 while the broader Topix Index lost 0.7% to 3,600 on Monday, with Japanese shares remaining under pressure as investors continued to grapple with Middle East uncertainty and volatile oil prices. In the latest developments, the US attacked military targets on Iran’s main oil-export hub of Kharg Island over the weekend, while reports suggest that the US will soon announce a coalition of countries to escort ships through the Strait of Hormuz. A senior Japanese official said the threshold is “extremely high” for Tokyo to deploy warships to help protect a shipping lane for oil in the Middle East. Meanwhile, the Bank of Japan is expected to hold its policy rate steady this week amid heightened uncertainty over the Iran war’s impact on the domestic economy. Notable decliners included Nintendo (-1.8%), Fujikura (-2%), and Lasertec (-2.1%).
