The Nikkei Stock Average rose 0.1% to 65,336.26 in early Tokyo trade, led by chip-related stocks including SoftBank Group, Lasertec and Kokusai Electric, as bargain hunting offset caution over U.S. strikes on Iranian oil tankers. The dollar traded at 153.34 yen, weaker than Tuesday's Tokyo close.
Japanese equities edged higher in early trading, with the Nikkei Stock Average up 0.1% at 65,336.26, as dip buyers moved into semiconductor names despite fresh U.S. strikes on Iranian oil tankers.
U.S. Central Command said Tuesday its forces destroyed five Iranian crude oil tankers after attempted missile attacks on a U.S. Navy warship, the latest exchange in a conflict that has pushed Brent crude toward $100 a barrel. Iran's Revolutionary Guard responded by launching missiles toward U.S. targets in Jordan, Iranian state media reported, while Houthi attacks on Saudi Arabia injured at least 73 people.
Chip-related names led the advance. SoftBank Group climbed 3.0%, Lasertec gained 6.6% and Kokusai Electric rose 5.8%. The dollar traded at 153.34 yen, weaker than the 153.74 level at Tuesday's Tokyo stock market close, a modest tailwind for export-oriented manufacturers whose overseas earnings gain value when the yen softens.
The marginal gain masks a split between dip buyers in beaten-down semiconductor names and investors wary of an oil shock that could squeeze corporate margins. Brent crude briefly climbed as high as $99.46 a barrel Tuesday, and U.S. average gasoline prices rose to $4.19 a gallon, according to GasBuddy.
The tankers destroyed Tuesday — the Kaviz, Charminar, Horizon 1 and Riesco in the Gulf of Oman, plus the Derya near Kharg Island — had exported a combined 45 million barrels of crude since May 2019, according to TankerTrackers. The strikes came three days after U.S. forces destroyed three Iranian tankers, and followed an Aug. 30 resumption of fighting after a roughly month-long pause.
Washington has coupled military action with economic pressure, imposing sanctions Tuesday on more than two dozen Iranian commercial and private airlines. Iran's Revolutionary Guard Navy has warned crews of tankers near Kuwait and Bahrain ports to leave their vessels, saying they could be targeted in retaliation.
For Japanese equities, the key risk is crude's trajectory. A sustained move above $100 a barrel would raise import costs for the energy-dependent economy, pressure the yen further and complicate the Bank of Japan's path toward normalizing policy. Investors are watching for further U.S.-Iran exchanges and their effect on oil prices in the sessions ahead.
This article is for informational purposes only and does not constitute investment advice.
