Heightened geopolitical risk stemming from attacks on a Saudi oil field propelled crude prices higher, dampening market enthusiasm and fueling inflation anxieties. Japan faces specific vulnerability to this situation given its substantial dependence on oil imports from the Middle East.

Technology equities spurred broad market declines, evidenced by Kioxia Holdings’ 6.8% decrease, Advantest and Taiyo Yuden’s respective 6% drops, and a 6.9% contraction at SoftBank Group. Tokyo Electron also registered a significant decline of 7%, underscoring persistent headwinds for the technology sector.