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TOKYO: Japan’s Nikkei share average edged lower in early trade on Wednesday, after escalating tensions in the Middle East left investors with little appetite for riskier assets as markets awaited further developments.

The Nikkei was down 1.4% at 38,113.55 as of 0007 GMT, while the broader Topix was down 0.7%.

Iran launched ballistic missiles on Tuesday, spurring vows from Israeli Prime Minister Benjamin Netanyahu that its arch foe would pay for the attack.

Japan’s Nikkei rises as tech shares gain

Tehran said any retaliation would be met with “vast destruction”, raising fears of a wider war. US stocks ended lower on Tuesday, with the Nasdaq losing more than 1%, as a risk-off mood spread following news of Iran’s attack.

Losses among Japanese shares were widespread, including major names like Sony Group Corp, Tokyo Electron , SoftBank Group and Fast Retailing.

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