Japan’s Nikkei 225 Index dropped 0.75% to close at 59,140 on Thursday, while the broader Topix Index declined 0.76% to 3,716, reversing earlier session gains as stalled US-Iran peace talks weighed on risk sentiment. The Strait of Hormuz remains effectively closed as Tehran maintains control of the strategic waterway, while the US blockade of Iranian ports continues, keeping energy prices elevated and inflation risks in focus. Meanwhile, President Donald Trump said the current truce would remain in place indefinitely as Washington awaits a new peace proposal from Iran. In Japan, attention has shifted toward next week’s Bank of Japan policy meeting, as policymakers grapple with heightened uncertainty stemming from the Middle East conflict. Among individual movers, notable losses were seen in heavyweight names including Disco Corp (-3.8%), Fujikura (-1.5%), Lasertec (-3.1%), Furukawa Electric (-3.5%), and JX Advanced Metals (-4.2%).