TOKYO: Japan’s Nikkei share average fell on Friday as heightened US-Iran tensions and a sell-off in US private-equity shares dented sentiment.
The Nikkei dipped 1.1 percent to close at 56,825.70, breaking a two-week rally to log a 0.2 percent weekly drop. The broader Topix sank 1.1 percent to 3,808.48, and edged down 0.3 percent for the week.
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.
“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.
Japanese air carriers Japan Airlines shaved 3.1 percent and ANA Holdings lost 2.7 percent. In addition, Blue Owl Capital’s announcement on selling assets and suspending redemptions at one of its funds dragged the Japanese market, where the securities sector led declines in the Tokyo Stock Exchange’s 33 industry sub-indexes.
Internet banking giant SBI Holdings tumbled 4 percent, the steepest fall since last December. Nomura Holdings, Japan’s largest brokerage, sank 3.7 percent.