Japan’s Nikkei dips 1% amid US-Iran tensions

TOKYO: Japan’s Nikkei share average fell on Friday, tracking Wall Street’s loss, as uncertainties over geopolitical tension between the US and Iran brewed and technology stocks dragged.

The Nikkei fell 1.1% to 56,821.39 in morning trade, while the broader Topix sank 1.2% to 3,805.43.

“With a three-day weekend coming up (in Japan), there’s a move to lock in profits for now on concern that something might happen between the US and Iran during the holiday,” said Yutaka Miura, senior technical analyst at Mizuho Securities.

US President Donald Trump warned Iran it must make a deal over its nuclear program or “really bad things” will happen, and set a deadline of 10 to 15 days, drawing a threat from Tehran to retaliate against US bases in the region if attacked.

The air transport sector was among the worst performers among the Tokyo Stock Exchange’s 33 industry groups with a 3.1% drop. Japanese air carriers ANA Holdings lost 3.2% and Japan Airlines shaved 3%.

Tech shares dragged down the Nikkei index the most. Chipmaking equipment maker Tokyo Electron slid 3.4%, and technology investor SoftBank Group sank 3.2%.

Meanwhile, drugmaker Sumitomo Pharma shares plunged roughly 13% in choppy trading, after rising as much as 6.8%, on profit-taking following a health ministry panel’s approval of the drugmaker’s iPS cell-derived treatment for Parkinson’s disease.

The stock’s 14-day relative strength index (RSI) reached 74.8 on Tuesday.

A figure above 70 indicates that the price gain is overstretched.