Japan’s Nikkei slumps on hawkish Fed bets, Middle East concerns

Japan’s Nikkei share average closed nearly 2% lower, following a sell-off on Wall Street due to strong US economic data and rising tensions in the Middle East. Chip-related shares were particularly affected, with Tokyo Electron, Advantest, and Screen Holdings all experiencing significant drops. The broader Topix index also fell by 1.36%. Investors are cautious due to the high level of uncertainty and the possibility of a spike in volatility.