Nikkei Average Briefly Dives over 2,600 Points

Tokyo, March 4 (Jiji Press)–Japan’s key Nikkei 225 stock average briefly plummeted more than 2,600 points on Wednesday afternoon, falling below 54,000 for the first time in about a month, due to risk-averse selling amid the tense situation in the Middle East. At 12:35 p.m., the Nikkei average stood at 53,618.20, down 2,660.85 points, or 4.73 pct, from Monday’s close. Tokyo stocks came under broad-based selling as escalating tensions in the Middle East continued to fuel risk-off moves. Sentiment was dampened by concerns that rising crude oil prices could spur inflation, amid worries that the conflict between the U.S.-Israeli side and Iran could become prolonged. Referring to the Middle East situation, an official at a major brokerage firm said, “It will lead to an increase in costs for companies and may have a negative impact on their earnings.” Middle East tensions have tanked equity markets across the globe, with three key U.S. market gauges, including the Dow Jones industrial average, falling on Tuesday. END [Copyright The Jiji Press, Ltd.]