TOKYO - Japan’s benchmark Nikkei Stock Average closed sharply lower on March 9th, falling 2,892 points from last week’s close to finish at 52,728, marking the third-largest decline in its history amid a surge in global crude oil prices tied to tensions involving Iran.
The Tokyo stock market remained broadly weak throughout the day at the start of the week, with selling spreading across nearly all sectors. At one stage during trading, the Nikkei Average plunged by more than 4,200 points.
By the close of trading, the index had settled at 52,728, down 2,892 points from the previous weekend, recording the third-largest drop on record. The trigger for the sharp fall was a rapid spike in crude oil prices.
As concerns grow that tensions involving Iran could become prolonged, the internationally recognized benchmark WTI crude oil futures price briefly surpassed 119 dollars per barrel. The level marks the highest since June 2022, shortly after Russia launched its invasion of Ukraine, roughly three years and nine months ago.
In the foreign exchange market, the dollar—often considered a safe-haven currency during times of crisis—was bought heavily, accelerating selling of the yen. At one point, the Japanese currency weakened to the high 158-yen range against the dollar.
One market participant warned that if oil prices continue to rise further, the Nikkei Average could fall below the 50,000 level.
Japan, which depends on the Middle East for more than 90 percent of its crude oil imports, faces growing concerns that rising energy costs could weigh on corporate earnings and push consumer prices even higher through increased gasoline and transportation costs.
Source: TBS
