Tokyo Stocks Plunge on Middle East Woes

Tokyo, March 30 (Jiji Press)–Tokyo stocks tumbled Monday amid rising crude oil prices reflecting concerns over a prolonged conflict between the U.S.-Israeli side and Iran. The benchmark Nikkei 225 average plunged 1,487.22 points, or 2.78 pct, from Friday to close at 51,885.85, losing ground for the third straight market day. The broader TOPIX index fell 107.35 points, or 2.94 pct, to 3,542.34. Fears that the conflict in the Middle East will last a long time flared again following media reports that the U.S. Defense Department is considering dispatching more ground troops for the fighting. This pushed key U.S. crude oil futures prices above 100 dollars per barrel again on Friday, contributing to the Tokyo stock market’s decline at the start of this week. The Nikkei lost more than 2,800 points at one point, briefly falling below 51,000 for the first time in a week on an intraday basis. Concerns over weaker corporate earnings and sluggish consumer spending due to rising crude oil prices led to relatively large rates of decline in the stocks of material and machinery makers as well as automakers. U.S. President Donald Trump has hinted at the possibility of bringing an end to the conflict by repeatedly postponing attacks on power facilities in Iran. In contrast, the United States is reportedly making preparations for ground operations in Iran, and the situation therefore remains uncertain, an official of a midsize securities firm said, adding that it is difficult for investors to move for bargain hunting despite the market’s recent decline. On the Tokyo foreign exchange market, the dollar rose to around 160.45 yen in early Monday trading, the highest level in about one year and eight months, due to safe-haven buying amid the Middle East tensions. Bu the greenback came under selling and slipped below 160 yen later as caution over currency market intervention by Japanese authorities grew after Japanese Vice Finance Minister for International Affairs Atsushi Mimura told reporters that “it may become necessary to take a decisive measure soon.” At 5 p.m., the dollar stood at 159.76-78 yen, down from 159.94-95 yen at the same time Friday. Meanwhile, the yield on the most recent issue of 10-year Japanese government bonds, regarded as Japan’s benchmark long-term interest rate, briefly climbed to 2.390 pct on Monday, the highest level since February 1999. END [Copyright The Jiji Press, Ltd.]