Japanese equities opened lower in early trade as uncertainty over the Middle East conflict and rising energy costs lingered. The market reacted cautiously, with investors weighing geopolitical risks against domestic earnings prospects, creating a defensive trading environment that pushed the broader index down.

Chip‑related stocks led the decline, with Lasertec down 9.8% on weak guidance, Soft Bank Group falling 6.1% amid valuation concerns, and Screen Holdings slipping 4.2% as semiconductor demand remained muted. The tech sector’s performance set the tone for the day.

The yen weakened to 158.49 yen against the dollar, up from 157.81 at Thursday’s close, reflecting global market volatility. Investors are focusing on earnings, especially Bridgestone’s upcoming quarterly report scheduled for Friday, which could provide a catalyst for the market.

The Nikkei Stock Average closed down 0.7% at 65210.13, a decrease driven by weak tech stocks and broader market unease. Despite the dip, analysts note that the index remains within a relatively stable range, suggesting potential for a rebound if geopolitical tensions ease.