Nikkei Drops for Second Day, Pressured by Global Risks
Japanese stocks weakened for a second straight day on Friday (May 15), with investors hedging against risk amid geopolitical uncertainty and the direction of monetary policy. The Nikkei 225 fell 1.6% to below 61,700, while the Topix fell 0.5% to around 3,860.
Pressure came from escalating global risks related to the Middle East and the progress of US President Donald Trump's meeting with Chinese President Xi Jinping. Oil prices, which were headed for a sharp weekly rise—after US-Iran negotiations stalled and the Strait of Hormuz remained effectively closed—weighed on sentiment in oil-importing economies like Japan. Markets also became more cautious after Xi warned that the Taiwan issue could trigger clashes between the world's two largest economies.
Domestically, stronger-than-expected producer inflation data reinforced speculation that the Bank of Japan could face pressure to raise interest rates. The combination of energy risks, which prolonged price pressures, and expectations of tighter policy added to the burden on risk assets, particularly stocks sensitive to funding costs and the global cycle.
The decline was led by technology and manufacturing stocks, with declines including in Kioxia Holdings (-8.2%), Fujikura (-9.6%), Furukawa Electric (-6.3%), Advantest (-6.8%), and Disco Corp (-5%). Market focus will now be on developments in the Middle East conflict, further signals from the Trump-Xi summit, oil price movements, and the direction of the Bank of Japan's communication regarding inflation and interest rates. (asd)
Source: Newsmaker.id
