Japan's Nikkei sheds early gains as Middle East uncertainty weighs
By Junko Fujita
TOKYO, March 26 (Reuters) - Japan's Nikkei share average reversed early gains to end lower on Thursday, as growing uncertainty over the Middle East conflict prompted investors to sell stocks.
The Nikkei .N225 fell 0.27% to close at 53,603.65, after rising as much as 0.8% earlier in the session on hopes that tensions in the region would ease.
The broader Topix .TOPX ended 0.22% lower at 3,642.8.
"Investors sold stocks to book profits from recent gains. Also higher oil prices fanned fears of inflation and downward pressure on the economy," said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
Japan's economy remains highly exposed to spikes in crude oil prices due to its heavy reliance on imported energy. The closure of the Strait of Hormuz heavily weighs on Japan, which gets around 90% of its oil shipments via the passage.
The mining and shipping sectors .IMING.T, .ISHIP.T jumped 5.16% and 2.79%, respectively, to become the top-performing sectors, a sign that investors bet the conflict will prolong, said a strategist at a domestic firm.
SoftBank Group 9984.T ended 0.34% higher, after surging as much as 7% to lead the Nikkei's earlier gains.
Shares of Arm Holdings ARM.O jumped 20% after the SoftBank-controlled company forecast that its new data-centre chip could generate billions of dollars in annual revenue.
Chip-testing equipment maker Advantest 6857.T dropped 1.96% to drag lower the Nikkei the most.
The index (Nikkei) traded still below the 25-day average of 55,300 after the two-session rally through Wednesday, and that signals the market remains cautious over the fate of the war, said Shuji Hosoi, senior strategist at Daiwa Securities.
Toto 5332.T, a manufacturer of high-tech toilet and bathroom fixtures, fell 5.66% to become the worst percentage loser in the Nikkei.
Of the more than 1,600 shares trading on the Tokyo Stock Exchange's prime market, 62% stocks declined, 34% rose and 3% traded flat.
