The DAX Index Opens 0.56% Lower

FR40 decreased to a 7-week low of 7595.00 Index Points.

Over the past 4 weeks, France Stock Market Index (FR40) lost 4.32%, and in the last 12 months, it decreased 0.94%.

The Nikkei 225 dropped 1.02% to close at 38,488 on Thursday, while the broader Topix Index declined 0.58% to 2,792, ending a three-day rally as rising geopolitical risks dampened investor sentiment.

Market jitters intensified amid reports that the US is preparing for a potential strike on Iran, heightening fears of broader instability in the Middle East. The selloff followed the US Federal Reserve’s decision to leave interest rates unchanged and maintain a cautious stance, citing inflation risks tied to President Donald Trump’s tariffs.

On the domestic front, investors turned their attention to upcoming inflation data, which could shape the Bank of Japan’s policy trajectory.

The BOJ recently held rates steady and reiterated a gradual approach to tightening.

Notable decliners included Advantest (-2.4%), Disco (-3.3%), Tokyo Electron (-3%), Sony Group (-2.5%), and Toyota Motor (-1.7%).

Australian shares ended flat with a negative bias on Thursday, following reports that the US is preparing for a potential strike on Iran.

The S&P/ASX 200 Index was little changed to close at 8,523.7.

US officials are reportedly preparing for a potential strike on Iran, with some suggesting it could take place over the weekend, Bloomberg reported.

Separately, the US Federal Reserve Chair, Jeremy Powell, said that higher prices from the impact of tariffs have to be paid, after holding interest rates steady.

On the domestic front, Australia's seasonally adjusted unemployment rate came in at 4.1% in May, unchanged from April, data from the Australian Bureau of Statistics showed.

Australia's May unemployment data is not expected to sway the market or analysts one way or another in the July Reserve Bank of Australia Board meeting, said ANZ Research in a report.

In company news, WiseTech Global appointed Sandra Hook and Rob Castaneda as independent non-executive directors, effective July 1, as part of its board renewal program. Shares of the company fell nearly 2% at market close.

KMD Brands expects US tariffs to impact its fiscal year earnings before interest, taxes, depreciation, and amortization (EBITDA) by around NZ$1 million. Shares of the company fell nearly 4% at market close.

Rio Tinto Group agreed to pay $138.75 million to settle a proposed class action lawsuit alleging that it defrauded investors by concealing problems with the timing and budget of the underground expansion of the Oyu Tolgoi copper-gold mine in Mongolia. Shares of the company fell 2% at market close.

The benchmark KOSPI rose 0.19% to close at 2,977 points on Thursday, recovering from the earlier losses as strength in autos and chipmakers offset the decline in energy and financial firms. Investor sentiment remained subdued amid concerns over potential U.S. involvement in the Middle East. Adding to the pressure, the Bank of Korea forecast that headline inflation will likely stay just below its 2% target in the near term.

The central bank attributed this outlook to the possible effects of new U.S. tariffs on Chinese goods, which may prompt Chinese exporters to divert shipments to regional markets in order to avoid the impact of Washington’s trade measures.

On the upside, notable gains were from SK Hynix (0.20%), and Hyundai Motor (0.73%), while losses were led by Samsung Electronics (-1%) and KB Financial Group (-0.37%).

In Tokyo, the Nikkei 225 Index fell 363 points or 0.93 percent on Thursday.

Leading the losses are Trend Micro (-7.58%), Chiyoda (-3.88%) and Hitachi Construction Machinery (-3.34%).

Top gainers were Toho (3.52%), Japan Steel Works (3.33%) and Fujikura (2.05%).