Tokyo: Japanese stocks closed lower today due to renewed geopolitical tensions in the Middle East and a sharp rise in the yen that negatively impacted export companies. The Nikkei 225 index fell 1.7% to close at 65,269.33 points, while the broader TOPIX index declined 1.83% to finish at 4,050.33 points.

According to Saudi Press Agency, the market downturn was primarily driven by investors' concerns over the escalating situation in the Middle East, which has historically influenced global markets. The increase in the yen's value added further pressure on export-driven industries, as a stronger yen makes Japanese goods more expensive overseas, thereby reducing competitiveness.

Market analysts noted that the geopolitical unrest has led to a cautious approach among investors, with many opting to sell off stocks to mitigate potential risks. The impact of the yen's appreciation was particularly felt among major exporters, including automotive and electronics companies, which saw significant declines in their stock values.

The decline in Japanese stocks reflects broader uncertainties in global financial markets, with investors closely monitoring international developments. The situation highlights the interconnectedness of global economies and the influence of geopolitical events on market dynamics.