17.04.202606:48:37UTC+00Japanese Shares Retreat on Market Caution

The Nikkei 225 fell 1.75% to close at 58,476 on Friday, pulling back from record highs as investors turned cautious ahead of the weekend and awaited signs of progress in US–Iran peace talks.

In the latest diplomatic developments, US President Donald Trump voiced optimism that the conflict with Iran could be resolved soon, stating that Tehran had agreed to conditions including abandoning its nuclear ambitions and reopening the Strait of Hormuz. He also announced a 10-day ceasefire between Israel and Lebanon, a move that could help pave the way for further US–Iran negotiations.

On the monetary policy front, Bank of Japan Governor Kazuo Ueda offered no clear guidance on the future path of interest rates ahead of this month’s policy meeting, underscoring the difficulty of balancing upside risks to inflation against downside risks to economic growth.

Technology and AI-linked shares led the selloff, with notable declines in Kioxia Holdings (-9.6%), Fujikura (-2.7%), Advantest (-1.8%), SoftBank Group (-2.6%), and Lasertec (-4.4%).