TOKYO: Japan’s Nikkei share average logged its worst week in more than a month on Friday, as uncertainty surrounding the Middle East conflict drove oil prices higher and fanned inflation concerns.
The Nikkei closed 0.3 percent lower at 66,016.36, with the index losing roughly 4 percent this week, the biggest since the week ended July 17.
The broader Topix edged 0.2 percent higher in the latest session, but still lost 3.1 percent for the week, its worst showing since early March.
Japan sources about 95 percent of its oil imports from the Middle East, with roughly 70 percent of supplies passing through the Strait of Hormuz.
Inflation concerns lifted Japanese bond yields, with the 10-year government note’s yield rising 3 basis points to 2.875 percent on Friday. Yields rise when bond prices fall.
AI-focused startup investor SoftBank Group fell 2.5 percent.
Despite the index’s decline, gainers outnumbered losers in the Nikkei, with 135 of its 225 constituents advancing, 86 declining and four closing unchanged.
Shipping was the top performer among the Tokyo Stock Exchange’s 33 industry groups, rallying 4.9 percent on expectations for higher freight rates, with the crucial Strait of Hormuz shipping route remaining effectively closed.
Mining, a category that includes oil explorers, rose 2.2 percent, followed by oil and coal, up 2.1 percent.
Comments