Nikkei Average Briefly Sheds over 2,000 Points

Tokyo, Sept. 11 (Jiji Press)–Japan’s Nikkei 225 stock average briefly surrendered over 2,000 points on Friday, as investors turned risk-averse on the back of higher oil prices. The index of 225 major issues listed on the Tokyo Stock Exchange’s Prime section closed at 64,011.34, down 1,259.61 points, or 1.92 pct, from Thursday. Major U.S. stock indexes dropped on Thursday after the U.S. benchmark West Texas Intermediate crude oil futures contract surged to over 100 dollars per barrel amid growing speculation that the ongoing military conflict between the United States and Iran would drag on. Market participants were also discouraged by a rise in U.S. interest rates, brought on by the climb in oil prices. “Investors around the world have been scaling back on their stock holdings, as they’ve become more reluctant to make riskier investments amid uncertainties over the future of the Middle East situation and crude oil prices,” an official of a Japanese securities firm said. An official of an investment advisory company said, “The situation was seen as negative for the market, as soaring crude oil prices reflecting a prolonged Middle East risk would result in a deterioration in company earnings, with Japanese firms dependent on Middle Eastern crude oil.” In Tokyo currency trading, the dollar stood at 154.20-23 yen at 5 p.m. Friday, up from 153.40-41 yen at the same time Thursday. END [Copyright The Jiji Press, Ltd.]