(Updates with prices and details, as of 0600 GMT)
By Brigid Riley
TOKYO, Oct 2 (Reuters) - 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 U.S.
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.
Chip-related shares Tokyo Electron ( TOELF ) and Advantest ( ADTTF )
slipped 3.7% and 4.8%, respectively, while AI-focused
startup investor SoftBank Group fell 2.4%.
Defence-related stocks, which were among the few gainers
in early trade, were sold off, including Kawasaki Heavy
Industries ( KWHIF ) down 0.6%.
Of the index's 225 constituents, 187 ended in the red.
Uniqlo parent firm Fast Retailing ( FRCOF ) shed nearly 4% to
weigh the heaviest in the Nikkei.
Bucking the trend, energy shares were supported by a jump in
oil prices on fears that the Middle East conflict could disrupt
supply. Inpex ( IPXHF ) was up 4.41% to top the index's
percentage gainers.
Oil and coal producers were among the best
performers by sector, with a 2.2% jump, just behind miners
that advanced 4.3%.