Tokyo stocks end mixed as Middle East tensions offset lift from capital spending

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1st September 2026 – (Tokyo) Tokyo shares closed mixed on Tuesday, with risk appetite constrained by renewed tensions in the Middle East even as a year‑on‑year rise in Japanese corporate capital expenditure for the second quarter of 2026 underpinned the broader market. The Nikkei Stock Average fell 96.59 points, or 0.15 per cent, to finish at 66,215.34, while the broader Topix advanced 25.57 points, or 0.62 per cent, to 4,181.86.

Gains were recorded across most sectors, but analysts said artificial intelligence and semiconductor names broadly retreated amid concerns about stretched valuations, pointing to a short‑lived bout of sector rotation. Investors balanced caution over geopolitics with signs of domestic investment resilience, leaving the overall market split by the close.