Japan Market Daily | Kabutaro & Friends

On June 4, 2026, the Nikkei 225 plummeted sharply, closing down 931 yen at 67,470 yen. Following the previous session's historic run that breached the 68,000 threshold for the first time, the Tokyo market faced heavy profit-taking. Sentiment was further dampened by Wall Street's decline, where the Dow Jones fell for the first time in six sessions as Middle East tensions flared up again following reports that Iran suspended peace talks with the U.S. and launched missile strikes against Kuwait and Bahrain. With crude oil futures and U.S. bond yields ticking upward, broad-based selling intensified in Tokyo, particularly hitting AI and semiconductor-related shares such as SoftBank Group and Kioxia Holdings due to short-term overheating concerns. In the FX market, the USD/JPY cross hovered in the high 159 to near 160 range, keeping investors on high alert for potential currency intervention by Japanese authorities.