2026.04.0202:38:59UTC+00Japanese Stocks Retreat After Trump Speech

The Nikkei 225 Index fell 1.9% to around 52,700, while the broader Topix Index declined 0.9% to 3,600 on Thursday, erasing early-session gains. The reversal came as investors scaled back expectations for a swift resolution to the Middle East conflict following a speech by US President Trump.

Trump said Washington’s core objectives in the conflict were close to being achieved but offered no clear timeline for ending the war. He also warned that the US could still strike Iran “extremely hard” over the next two to three weeks. While noting that the US did not need the Strait of Hormuz and suggesting the waterway would reopen naturally as tensions eased, his comments did little to calm markets, and ongoing concerns over the strait kept energy prices volatile.

Earlier, hopes for an imminent end to the month-long conflict had buoyed global equities, but Trump’s remarks shifted sentiment and pushed stocks lower again. Most sectors retreated, with major index constituents among the biggest decliners, including Mitsubishi UFJ Financial (-1.9%), SoftBank Group (-1.4%), and Hitachi (-1.3%).