Japan’s Nikkei share average fell 1.1% to 56,821.39 in morning trade on Friday, tracking losses on Wall Street amid rising geopolitical tensions between the U.S. and Iran. Technology stocks weighed heavily on the index, while the air transport sector saw sharp declines. Investors appeared cautious ahead of a three-day weekend.
Tokyo’s stock market declined on February 20, influenced by escalating geopolitical tensions between the United States and Iran. The Nikkei share average (.N225) dropped 1.1% to 56,821.39 during morning trading, while the broader Topix index (.TOPX) fell 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 U.S. and Iran during the holiday,” said Yutaka Miura, senior technical analyst at Mizuho Securities.
The backdrop involved U.S. President Donald Trump warning Iran to reach a deal on its nuclear program within 10 to 15 days, or “really bad things” would happen. Tehran responded by threatening retaliation against U.S. bases in the region if attacked.
Among the Tokyo Stock Exchange’s 33 industry groups, the air transport sector performed worst, declining 3.1%. ANA Holdings (9202.T) lost 3.2%, and Japan Airlines (9201.T) fell 3%.
Technology shares dragged the Nikkei the most. Chipmaking equipment maker Tokyo Electron (8035.T) slid 3.4%, and technology investor SoftBank Group (9984.T) sank 3.2%.
Meanwhile, drugmaker Sumitomo Pharma (4506.T) shares plunged roughly 13% in volatile trading after rising as much as 6.8%, due to profit-taking following a health ministry panel’s approval of its iPS cell-derived treatment for Parkinson’s disease. The stock’s 14-day relative strength index (RSI) reached 74.8 on Tuesday, a level above 70 indicating overstretched price gains.
