Oil prices fell sharply on expectations of progress in negotiations toward an end to fighting between the United States and Iran. The Nikkei started higher but declined later, with losses continuing toward the close.
On expectations that negotiations toward an end to fighting between the United States and Iran would make progress, futures prices in the New York crude oil market briefly fell into the $87 range, reaching their lowest level in about a month. Expectations that the midterm election results will put pressure on the Trump administration are also seen as a factor that could weigh on oil prices.
The Nikkei Stock Average started higher on the morning of the 5th, but although buying initially led the market, selling spread among semiconductor-related stocks amid uncertainty surrounding AI investment, and the index gradually turned lower. The Nikkei was trading ¥275.12 below its level on the 4th.