Tokyo, April 09 (QNA) - Japan's stocks dropped on Thursday after posting strong gains in the previous session, as the initial optimism following the announcement of a fragile two-week ceasefire in the Iran war faded, giving way to caution in the markets.

The Nikkei 225 fell 0.73 percent to 55,895.32, snapping a four-session winning streak. The broader TOPIX declined 0.9 percent to 3,741.47.

In the previous session, the Nikkei jumped 5.4 percent to its highest level in more than a month, on hopes of reopening the Strait of Hormuz.

Shares of chipmakers and artificial intelligence-related companies fell, with Advantest down 1.67 percent and SoftBank Group slipping 1.23 percent.

Out of more than 1,600 stocks traded on the Tokyo Stock Exchange, 18 percent rose and 80 percent declined, while about 1 percent were unchanged. (QNA)