Decline of the Japanese Nikkei Due to Geopolitical Risks Following Israel's Attacks

• The Japanese Nikkei index fell by 1.5% due to geopolitical threats.
• Investors are showing caution without mass selling of stocks.
• Oil and gold prices have risen due to fears of supply disruptions.

This is reported by The Yomiuri Shimbun, Asharq Al-Awsat.

Decline of the Japanese Nikkei

On June 13, 2025, the Japanese Nikkei index decreased by 1.5%, reaching 37,584.47 points, amid news of Israeli military strikes on Iran. The broader Topix index also fell by 1.28%, stopping at 2,7473.9.

Geopolitical Risks and Market Reaction

Investors showed caution in response to geopolitical risks, but there was no mass selling of stocks as market participants preferred to observe further developments. As noted by Naoki Fujiwara, senior fund manager at Shinkin Asset Management, the market was not overwhelmed by panic.

Impact on Companies and Currency

The chip-making equipment manufacturer Tokyo Electron fell by 5.5%, while the owner of the Uniqlo brand, Fast Retailing, lost 2.1%. Exporters' stocks also declined due to the strengthening yen: Toyota Motor decreased by 2.75%, and Nissan Motor by 1.5%.

Currency Market Reaction

In the currency markets, the US dollar rose, and both the Japanese yen and Swiss franc strengthened amid news of the attacks. The index measuring the dollar against six other currencies increased by 0.4%. However, the Australian and New Zealand dollars fell by 0.9% and 1%, respectively, as investors shifted to safe assets.

Oil and Gold Prices

Oil prices rose by more than 6%, as investors anticipate potential supply disruptions from the oil-rich region. The price of gold also increased by 0.8%, reaching its highest level since early May.

Теги: Економіка