Japanese shares ended in the red on Friday as an Israeli attack heightened Middle East tensions, adding to global market pressure already stirred by US President Donald Trump's trade policy shifts.
The Nikkei 225 fell 0.89%, or 338.84 points, to end at 37,834.25.
Israel declared a state of emergency ahead of an expected missile and drone strike from Tehran, following what it described as a preemptive move targeting Iran's nuclear program. Explosions were reported near Tehran early Friday, state-run Nour News said.
Two US officials said Israel had begun strikes on Iran without US involvement. CNN reported that Trump was holding a cabinet meeting.
The attack follows stalled US-Iran nuclear talks, with a sixth round set for Sunday in Oman, according to officials from both sides and Omani mediators.
On the economic front, Japan's industrial production fell 1.1% in April from the previous month, with inventories down 0.8% and shipments flat, government data showed on Friday. The operating ratio rose 1.3%, while production capacity dipped 0.4%.
Service sector activity edged up 0.3%, lifted by gains in finance, IT, and wholesale trade, though transport and postal services dropped 3.4%. The unadjusted index was up 1.9% on the year.
In corporate updates, Yamada Holdings (TYO:9831) expects 28.44 billion yen in dividends from Yamada Denki on June 30. The income will be booked in non-consolidated results for FY2026, with no impact on group earnings.
Toho (TYO:8142) will acquire Sankyo Shokucho, formed from six Sankyo Group firms, for about 404 million yen. The deal supports Toho's poultry expansion under its SHIFT-UP 2027 strategy and is expected to close by early October.
Renova (TYO:9519) sold 277.2 million kWh of electricity in May, up 50.4% on strong biomass output. Year-to-date sales rose 145.2% to 540.8 million kWh.
