Japan's stock markets declined on Thursday, giving back some of the previous session's gains as higher oil prices and geopolitical uncertainty weighed on sentiment. The Nikkei 225 fell 0.73% to 55,895, while the broader Topix Index dropped 0.9% to 3,741.
Investor caution increased amid ongoing concerns over the fragile ceasefire involving Iran and the US-Israeli side. A senior Iranian official indicated that parts of the agreement may have already been violated following new Israeli strikes on Lebanon, while Iran continued to largely restrict traffic through the Strait of Hormuz.
On the corporate front, shares of Fast Retailing, the parent company of Uniqlo, edged lower despite raising its full-year profit outlook, supported by strong demand in the US and Europe. Meanwhile, Seven & I Holdings saw a sharp decline after announcing a delay in the planned listing of its US convenience store business due to uncertainties in its American operations.