Tokyo Stocks Plunge Further amid Oil Price Worries

Tokyo, March 3 (Jiji Press)–Tokyo stocks plunged further on Tuesday amid concerns about rising oil prices stemming from the deteriorating situation in the Middle East, with the key Nikkei 225 stock average logging its largest daily loss this year. The index of 225 selected issues on the Tokyo Stock Exchange’s top-tier Prime section closed at 56,279.05, down 1,778.19 points, or 3.06 pct, from Monday, after briefly losing over 1,900 points. The broader TOPIX index slipped 126.25 points, or 3.24 pct, to 3,772.17. Both indexes fell for the second consecutive day, partly weighed down by profit-taking selling, after reaching record highs last week, market sources said. Market players are closely monitoring the military confrontation between the U.S.-Israel side and Iran. On Monday, a senior member of Iran’s elite Islamic Revolutionary Guard Corps claimed that the Strait of Hormuz, a key chokepoint for maritime transport, had been blockaded. Broad-based selling hit the stock market from the outset of Tuesday’s session, as investors were concerned that rising oil prices could fuel inflation. More than 90 pct of stocks on the Prime section fell. Trading value on the section rose to nearly 10 trillion yen. “There may have been hedge selling to prepare for a further fall in stock prices,” said an official from a bank-affiliated securities company. END [Copyright The Jiji Press, Ltd.]