Japan Shares May Extend Wednesday's Losses: ^N225 Down 1.5% on Global Risks

[Para 1: The Lead] Japan's Nikkei 225 index may extend its losses from Wednesday, declining 1.5% as of 00:00 UTC on Thursday, February 05, 2026. The market is reacting to global economic uncertainties and geopolitical tensions, which have been weighing on investor sentiment. [Para 2-3: Supporting details & Context] The index, representing the largest 225 companies listed on the Tokyo Stock Exchange, has been sensitive to global market movements. The yen's strength against the dollar also contributed to the decline, as it makes Japanese exports less competitive in the international market. Investors are closely monitoring developments in the US-China trade relations and the ongoing tensions in the Middle East for further market volatility.