Nikkei Average Briefly Down over 1,500 Points in Morning

Tokyo, March 2 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average briefly plunged over 1,500 points Monday morning on risk-off selling amid rising tensions in the Middle East following the U.S.-Israeli attack on Iran and the killing of its supreme leader Ayatollah Ali Khamenei. But the key index comprising 225 issues on the Tokyo Stock Exchange’s Prime top-tier section narrowed its losses, finishing the morning session down 899.51 points, or 1.53 pct, from Friday at 57,950.76. The broader TOPIX index ended the morning at 3,874.76, falling 63.92 points, or 1.62 pct. Market players voiced concern about the Middle East situation, with an official at a major securities company saying, “If the military conflict is prolonged, the impact on the Japanese economy may increase.” Crude oil futures soared after the Strait of Hormuz, a chokepoint for international crude oil shipments, was effectively closed due to the fighting. Market sources said that the Nikkei was also weighed down by investor caution following its 2,000-plus-point climb last week, while an official at a midsize securities brokerage said some investors sold stocks ahead of an anticipated drop in U.S. equities later Monday. In Tokyo currency trading, the dollar came to 156.27-28 yen at noon, up from 156.08-10 yen at 5 p.m. Friday. END [Copyright The Jiji Press, Ltd.]