Equity

The downturn materialized amid escalating oil prices, propelled by heightened geopolitical risks stemming from renewed US-Iran friction, which amplified anxieties surrounding inflationary pressures. Investor sentiment also remained guarded following the release of recent Federal Reserve minutes, signaling a policy stance inclined toward tightening monetary conditions and the potential for additional interest rate adjustments.

In Japan, Bank of Japan policymaker Ayano Sato indicated support for a measured strategy regarding interest rate increases, noting that additional policy adjustments may occur incrementally. Equities in the technology and financial sectors experienced significant declines. Taiyo Yuden's shares decreased by 4.4%, SoftBank Group’s stock retreated 4.3%, and Mitsubishi UFJ's value diminished 3.3%.