Nikkei Average Down over 1,000 Points in Morning

Tokyo, April 2 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average plunged more than 1,000 points Thursday morning, with selling sparked by U.S. President Donald Trump’s address on the Iranian situation. The index of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section finished the morning session at 52,731.94, down 1,007.74 points, or 1.88 pct, from Wednesday’s closing. The broader TOPIX index fell 43.74 points, or 1.19 pct, to 3,627.16. The Nikkei rose more than 500 points soon after the market opened. In the address, delivered Thursday morning Japan time, Trump did not specify the timing of reaching a possible ceasefire in the conflict between the U.S.-Israeli side and Iran, and the Nikkei slipped into negative territory as selling pressure intensified due to growing uncertainty over the future course of the market. On Wednesday, the index surged more than 2,600 points on hopes for an early ceasefire, so “optimism had spread” in the market, a major brokerage official said. But Trump’s address “lacked specifics and was disappointing,” a Japanese asset management firm official said. Profit-taking hit a wide range of issues as a result, brokers said. The closely watched speech by Trump “bolstered the view that crude oil prices will remain elevated,” a market source said. Investors were spooked by Trump’s remark in the address that the United States would carry out severe attacks on Iran over the next two to three weeks. “The market will continue to be unstable for a while as uncertainty over the Middle East rises,” the source said. The content of the speech was “different from what had been expected,” an official of a midsize brokerage house said. END [Copyright The Jiji Press, Ltd.]