Tokyo, Japan, 31 August 2026 – Japanese equities ended modestly lower as investors weighed renewed expectations of higher interest rates against escalating conflict involving the United States and Iran. The Nikkei 225 closed at 66,256.36, down 0.20%, reflecting a market caught between strong corporate exposure to global growth and rising pressure from oil prices, bond yields and monetary-policy uncertainty.
Geopolitical risk returned to the foreground after fresh fighting lifted crude prices. Brent futures rose 2.7% to US$90.51 a barrel as attacks around strategically important Iranian facilities and the wider region raised concern about supply disruption. Japan imports most of its energy, making a sustained oil-price increase a direct threat to the trade balance, household purchasing power and corporate margins.
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