20.02.202600:46:18UTC+00Japanese Shares Fall as Tech, Banks Weigh

The Nikkei 225 Index fell 1% to around 56,900, while the broader Topix Index declined 1.2% to 3,805 on Friday, snapping a two-day winning streak, with technology and banking shares leading the pullback. Global risk sentiment deteriorated amid rising tensions between the US and Iran, as the US military stepped up its presence in the Middle East and Trump considered possible military action to increase pressure on Tehran in negotiations.

Investors also turned more cautious ahead of key US economic data that could influence expectations for Federal Reserve policy, particularly after minutes from the latest meeting showed some officials remained open to further rate hikes if inflation proves persistent.

On the domestic front, data showed that both headline and core inflation in Japan slowed in January, reflecting the impact of government measures aimed at easing cost-of-living pressures. Among major decliners, tech and bank heavyweights led losses, including Tokyo Electron (-3.5%), SoftBank Group (-3.3%), and Mitsubishi UFJ (-2.2%). Despite Friday’s drop, both benchmark indexes were on track to end the week roughly flat.