TOKYO: Japan’s Nikkei share average ended lower on Wednesday, as deeper tensions in the Middle East left investors with little appetite for riskier assets while markets awaited further developments.

The Nikkei extended losses to slide 2.18% to an over one-week closing low of 37,808.76, while the broader Topix finished 1.4% lower at 2,651.96.

Iran launched ballistic missiles on Tuesday, spurring vows from Israeli Prime Minister Benjamin Netanyahu that its arch foe would pay for the attack. Tehran said any retaliation would be met with “vast destruction”, raising fears of a wider war.

“The escalation in the Middle East has resulted in a classic risk-off reaction, posing headwinds for broader Japanese equities,” said Charu Chanana, global market strategist and head of forex strategy at Saxo.

Japanese technology shares led losses, following their US peers lower after a nearly 3% drop on the Philadelphia SE Semiconductor index overnight.

Wall Street’s three main stock indexes also ended lower on Tuesday, with the Nasdaq losing more than 1%, as a risk-off mood spread following news of Iran’s attack.