Tokyo Stocks Plummet on Trump Address

Tokyo, April 2 (Jiji Press)–Tokyo stocks plummeted Thursday as U.S. President Donald Trump’s closely watched address dashed hopes for de-escalation in Middle East tensions, with the benchmark Nikkei 225 average briefly losing over 1,400 points. The index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section ended at 52,463.27, down 1,276.41 points, or 2.38 pct, from Wednesday. The broader TOPIX index fell 59.23 points, or 1.61 pct, to 3,611.67. The Nikkei gained more than 500 points in early trading after U.S. stocks advanced Wednesday thanks to increased hopes for an end to the conflict between the U.S.-Israeli side and Iran. After Trump began the address at 10 a.m. Thursday Japan time, however, expectations for an early ceasefire faded and crude oil futures prices spiked, leading to a broad range of stocks succumbing to selling pressure. “Investors who bought back stocks yesterday on hopes for an end to the fighting moved to sell shares massively today,” a bank-affiliated brokerage official said. “There was no surprise” in Trump’s address, a Japanese bank official said. But “the view that uncertainty over the Middle East will continue for a while spread, with Trump saying that the United States will intensively attack Iran over the next two or three weeks, the official added. In Tokyo foreign exchange trading, the dollar rose above 159.50 yen since safe-haven buying of the U.S. currency took the upper hand after Trump’s address. The greenback stood at 159.57-58 yen at 5 p.m., up from 158.78-80 yen at the same time Wednesday. END [Copyright The Jiji Press, Ltd.]