Japan's Nikkei 225 Index Drops 1% to Below 64,600 Amid Oil Price Concerns

The Nikkei 225 index in Japan dropped around 1% to below 64,600 on Thursday, marking its third consecutive session of losses. The broader Topix Index also declined 0.65% to around 4,020.

Investors were reacting to higher oil prices, which raised concerns about inflation and strengthened expectations that the Bank of Japan could raise interest rates in the near term. The yen strengthened to a nearly seven-month high, keeping currency movements firmly in focus for Japanese investors.

Several major technology and consumer companies recorded losses during the session, including Fujikura, Furukawa Electric, Ibiden, Nintendo, Fast Retailing, and Tokyo Electron. In contrast, some financial stocks moved in the opposite direction, with Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho Financial posting gains.

The Nikkei 225 index has still gained significantly over the year, with a 45.65% annual rise. However, investors are now watching whether the recent three-session decline develops into a broader correction or remains a short-term pullback after the market's strong gains this year.