Japan's Nikkei slips as US futures fall, investors eye Israel-Iran ceasefire

SumCo

25/06/2025 04:24

TOKYO, June 25 (Reuters) - Japan's Nikkei share average inched lower on Wednesday, weighed down by declines in U.S. stock futures, as investors awaited clarity on whether a fragile ceasefire between Israel and Iran would hold.

The Nikkei .N225 was down 0.1% at 38,750.47 by the midday break, after flitting between modest gains and losses.

The broader Topix .TOPX fell 0.34% to 2,771.93.

"The market had already factored in the gains of U.S. stocks last night subsequent to a ceasefire announcement," said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.

The Nikkei snapped a three-day losing streak to end higher on Tuesday after U.S. President Donald Trump announced the ceasefire agreement late Monday.

The truce appeared fragile: Both Israel and Iran took hours to acknowledge they had accepted the ceasefire and accused each other of violating it.
Still, investors viewed the ceasefire rhetoric as a sign of de-escalating tensions, pushing the U.S. stocks up more than 1% overnight. .N

But S&P EScv1 and Nasdaq NQc1 futures slipped during Asian hours, which the market interpreted as a sign of potential declines on Wall Street later in the day, said Kentaro Hayashi, senior strategist at Daiwa Securities.

"Investor sentiment was also weighed by the stability of Japanese politics ahead of the upper house election (next month), and the development of ongoing trade talks. If the U.S. Federal Reserve cuts interest rates, that could lift the yen higher," he added.

Technology investor SoftBank Group 9984.T fell 3.18% to drag the Nikkei the most. Medical equipment maker Olympus 7733.T tanked 10.99%.

Shares of Toyota Motor 7203.T lost 1.41%.

Chip-related stocks advanced, tracking a 3.8% gain in the U.S. Philadelphia Semiconductor Index .SOX. Tokyo Electron 8035.T climbed 2.34% and Advantest 6857.T added 1.31%.

Of more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 27% rose and 68% dropped, while 4% traded flat.

 (Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)

 ((junko.fujita@thomsonreuters.com;))