Nikkei Briefly Falls over 2,000 Points amid Oil Price Concern

Tokyo, March 19 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average briefly shed over 2,000 points Thursday as concerns spread among investors over persistently high crude oil prices amid rising tensions in the Middle East. The index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section closed at 53,372.53, down 1,866.87 points, or 3.37 pct, from Wednesday. The broader TOPIX index ended at 3,609.40, down 108.01 points, or 2.91 pct. “Despite the optimistic sentiment that spread (among investors on Wednesday) after some ships passed through the Strait of Hormuz, the market mood and stock prices are turning in the opposite direction due to the exchange of attacks by Israel and Iran on oil-related facilities showing no sign of stopping,” an official of a midsize securities firm said. “Scarce buying orders can’t absorb the continuing selling orders,” an official of another midsize securities firm said. In Tokyo currency trading Thursday, the dollar climbed close to 160 yen. At 4 p.m., the dollar stood at 159.67-68 yen, up from 158.76-77 yen at 5 p.m. Wednesday. Market players interpreted comments by U.S. Federal Reserve Chairman Jerome Powell at a press conference after the Fed’s two-day policy meeting to indicate a cautious stance on an additional interest rate cut. This pushed up U.S. long-term interest rates and triggered a wave of dollar buying. At the meeting that ended Wednesday, the Fed decided to keep interest rates unchanged. END [Copyright The Jiji Press, Ltd.]