Nikkei Average Drops over 2,600 Points in Morning

Tokyo, March 23 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average plunged over 2,600 points Monday as mounting tensions in the Middle East, particularly over the Strait of Hormuz, continued to spook investors. At 9:55 a.m., the index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section stood at 50,728.05, down 2,644.48 points, or 4.95 pct, from Thursday. The Nikkei fell below 51,000 for the first time since Jan. 5 on an intraday basis. Market players were rattled as the United States and Iran ramped up their rhetoric in their ongoing conflict, mainly as Washington called for the reopening of the Strait of Hormuz, a critical chokepoint for global oil supplies. Semiconductor-related issues especially attracted heavy selling. “The market is factoring in possible stagflation,” a combination of stagnant growth and high inflation, an official at a bank-affiliated securities brokerage said. Meanwhile, the yield on the newest issue of 10-year Japanese government bonds, the country’s benchmark long-term interest rate, briefly rose to as high as 2.32 pct in Tokyo interdealer bond trading Monday. END [Copyright The Jiji Press, Ltd.]