SynopsisMarkets are also bracing for a series of key events, including US consumer price data due on Friday, the Federal Reserve's policy decision next Wednesday and the BOJ's monetary policy decision.ETMarkets.comThe Nikkei declined 0.8% to 64,597.46 by the end of the morning session, while the broader Topix index fell 0.3% to 4,032.89.Japan’s Nikkei share average fell on Thursday as global markets came under pressure from oil prices rising above $100 a barrel amid an escalation in the Middle East conflict, while growing expectations of a faster pace of monetary tightening by the Bank of Japan also weighed on sentiment, Reuters reported.The Nikkei declined 0.8% to 64,597.46 by the end of the morning session, while the broader Topix index fell 0.3% to 4,032.89.Read more: US stocks today: US stocks retreat as oil crosses $100, yields rise ahead of inflation dataIran said on Wednesday it had attacked 10 ships near the Strait of Hormuz after the United States sank five Iranian oil tankers, marking the biggest wave of attacks on shipping by both sides since the six-month-old conflict began, Reuters reported.The escalation pushed crude oil prices higher and drove global bond yields up as investors anticipated a tighter monetary policy response from central banks.Expectations of a Bank of Japan rate hike next week also increased after BOJ board member Kazuyuki Masu warned on Thursday of the risk that the central bank could be forced to raise interest rates rapidly if it fell behind the curve on inflation.Read more: Global Market Today: Asian stocks fall as oil stokes inflation fearsMarkets are also bracing for a series of key events, including US consumer price data due on Friday, the Federal Reserve's policy decision next Wednesday and the BOJ's monetary policy decision.Strategists at Nomura Securities said higher crude oil prices and interest rates were weighing on Japanese equities, according to Reuters.Despite the near-term pressure, expectations for solid earnings growth among Japanese companies, particularly in the artificial intelligence and semiconductor sectors, remain supportive. Investors could look for opportunities to buy on dips, although the market may continue to face limited upside without fresh catalysts.Nintendo was among the biggest decliners on the Nikkei, falling 5.8%.Data-centre cable makers Fujikura and Furukawa Electric dropped 5.7% and 4.8%, respectively, giving back part of their sharp gains from Wednesday.Energy-related stocks bucked the broader weakness. Oil and coal shares gained 1.1%, making the sector one of the best performers among the Tokyo Stock Exchange's 33 industry groups.Securities firms and banks were also among the strongest performers, rising 2.1% and 1.9%, respectively, as higher interest rates boosted the sector.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless