Nikkei Sheds Over 1,600 Points in Morning

Tokyo, March 19 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average gave up over 1,600 points briefly in Tokyo trading Thursday morning, following overnight falls in key U.S. stock indexes. At 10:13 a.m., the index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section stood at 53,625.56, down 1,613.84 points, or 2.92 pct, from Wednesday’s closing. Selling took the upper hand from the outset in the wake of Wednesday’s U.S. stock market drops reflecting reignited inflation concerns, which were brought on by soaring crude oil prices following an escalation in Iran tensions, market sources said. Market sentiment deteriorated due to the Israeli military’s attack on a major natural gas field in southern Iran on Wednesday, brokers said. In Tokyo currency trading Thursday morning, the dollar rose close to 160 yen, reflecting a climb in U.S. long-term interest rates. Investors considered U.S. Federal Reserve Chairman Jerome Powell’s statements at a press conference after the central bank’s two-day policy meeting to be showing his cautious stance about an additional interest rate cut. At the meeting that ended Wednesday, the Fed decided to keep interest rates unchanged. At 10 a.m. Thursday in Tokyo, the dollar stood at 159.78-78 yen, up from 158.76-77 yen at 5 p.m. Wednesday. END [Copyright The Jiji Press, Ltd.]