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Japan's Nikkei drops as Middle East conflict, mixed earnings weigh
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Japan's Nikkei drops as Middle East conflict, mixed earnings weigh
Apr 29, 2026 8:03 PM

TOKYO, April 30 (Reuters) - Japan's Nikkei share average

fell on Thursday as a deadlock in U.S.-Iran peace negotiations

and mixed corporate earnings kept investors on the sidelines,

overshadowing stellar artificial intelligence-driven results

from major U.S. tech companies.

The Nikkei 225 Index was down 0.8% at 59,427.56,

ahead of a midday recess. The broader Topix slid 1.4% to

3,719.52.

"Amid concerns over the situation in the Middle East and

with earnings reports set to be released soon, the market is in

a wait-and-see mood," said Naoki Fujiwara, senior fund manager

at Shinkin Asset Management.

"Since this falls between holiday periods, buying interest

is not especially strong, and because price levels remain high,

profit-taking is emerging."

Oil prices extended gains on Thursday after rising more than

6% in the previous session on supply concerns as talks to end

the U.S.-Israeli war on Iran have deadlocked.

AI-related shares on the Tokyo bourse were mostly lower,

even after Alphabet topped Wall Street estimates for

quarterly revenue as enterprise spending on AI delivered the

best quarter of reported growth for its cloud unit yet.

Chip-testing equipment maker Advantest ( ADTTF ) was down 3.1% and

chip-making equipment maker Tokyo Electron ( TOELF ) traded nearly 1%

lower.

IT services firm Fujitsu ( FJTSF ) was the biggest daily

percentage loser, plummeting as much as 15.2% in its biggest

drop in 11 years after its earnings outlook missed analysts'

expectations.

Shares of Oriental Land ( OLCLF ) lost 8.6% after the Tokyo

Disney Resort operator said it would see a decline in operating

profit for this year due to increased labour costs and repair

expenses. Telecom and IT solutions provider NEC shed

6.7%.

Bucking the overall trend, TDK shares rose to a record high

after the electronic components maker forecast a 15% increase in

net profit for the current business year, above analysts'

estimates.

Sumco ( SUMCF ), a leading silicon wafer supplier for

semiconductors, jumped 15.1% and Renesas Electronics ( RNECF ) ,

a microcontroller and automotive chips maker, advanced roughly

10%.

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