Japan Market Daily | Kabutaro & Friends

On August 18, 2026, Tokyo's Nikkei 225 fell sharply for the first time in six sessions, closing down 1,759.52 points (-2.54%) at 67,460.73, with losses exceeding 1,800 points at one stage. The TOPIX also fell for a second session, down 43.89 points to 4,140.22. The 60-day negotiations between the US and Iran aimed at ending hostilities expired on the 17th, and President Trump indicated he would not seek an extension, deepening uncertainty over the Middle East. Japan's long-term interest rate rose to 2.945% at one point, its highest in about 30 years, and the combination made high-PER semiconductor stocks look relatively expensive. Advantest and Tokyo Electron alone dragged the index down by about 836 points. Among Nikkei constituents, 80 rose and 142 fell. On the other hand, mining, oil and coal products, and shipping stocks were bought on higher oil prices, and funds also flowed into defensive names such as pharmaceuticals. USD/JPY traded between the 159.30 and 159.74 levels. WTI crude hovered around $85 per barrel.