Japan's Nikkei set for worst week in over a month amid Middle East uncertainty

Business Recorder reported that Tokyo's Nikkei slipped on Friday, heading for a steep weekly decline as doubts over the Middle East conflict pushed oil prices higher and stirred inflation fears. At the midday recess the index was down 0.3%, which would mean a 4% loss for the week, its largest since the week ended July 17.

The broader Topix fell 0.1% and was set for a 3.4% drop over the week. Treasury Secretary Scott Bessent said on Thursday that Washington would hit Iran with "the toughest sanctions in history," as it ramped up economic pressure to bring an almost six-month war to an end. Crude jumped about $2 overnight, while Japan's 10-year government bond yield rose 3 basis points to 2.875% on Friday, reflecting inflation worries.

Maki Sawada, a strategist at Nomura Securities, said profit taking was likely ahead of the weekend while oil and bond yields remained elevated. Fast Retailing dropped 4% and was a major drag on the Nikkei, while SoftBank Group lost 1.3%. Shipping was the strongest of the Tokyo Stock Exchange's 33 industry groups, climbing 2.8% on hopes for higher freight rates while the Strait of Hormuz route stays effectively shut.