Japan’s Nikkei falls as oil climbs on prolonged Middle East conflict
- The Nikkei was down 1.3% at 54,323.47
TOKYO: Japan’s Nikkei share average dropped on Thursday as global oil prices resumed their climb, while concerns grew that the US-Israeli war with Iran could drag on.
The Nikkei was down 1.3% at 54,323.47, as of 0025 GMT, and the broader Topix slipped 1.13% to 3,656.85.
“The market is betting that the war will be prolonged,” said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
“The oil prices rose, and that prompted investors to sell stocks.” Oil prices settled up nearly 5% overnight as fresh attacks on ships in the Strait of Hormuz worsened supply disruption fears, and analysts said the International Energy Agency’s proposal for a record release of oil reserves is inadequate to ease those worries.
Japan, which is dependent on the Middle East for around 95% of its oil supplies, said it would release about 80 million barrels of oil from its strategic reserves, equivalent to 45 days of supply, to mitigate global disruptions.
Technology stocks fell, with Advantest and SoftBank Group losing 2.5% and 3.93%, respectively.
Tokyo Electron fell 1.53%.
All but one of the Tokyo Stock Exchange’s 33 industry sub-indexes dropped, with the real estate sector losing 2.96% to become the worst performer. The mining sector rose 0.85%.
Bucking the broader market trend, shares of heavy machinery maker Kawasaki Heavy Industries rose 2.95%, emerging as the Nikkei’s top percentage gainer.
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