Japan’s Nikkei treads water, set to lose 11% in March as Mideast war drags on

TOKYO: Japan’s Nikkei share average limped along on Tuesday, and was on track for a steep monthly decline, as the ongoing Middle East conflict weighed on sentiment.

The benchmark Nikkei 225 Index edged up 0.02% to 51,896.91, reversing early losses, but was set to fall more than 11% in March - its biggest monthly drop since May 2010.

The broader Topix added 0.5% to 3,559.92.

Technology shares declined overnight, dragging Wall Street indexes broadly lower, as the war in the Middle East escalated.

Iran attacked a fully-loaded crude oil tanker in Dubai on Monday, setting it ablaze.

Japanese shares found support after the Wall Street Journal reported that US President Donald Trump had told aides he was willing to end the military campaign against Iran even if the Strait of Hormuz remains largely closed.

“Semiconductor-related stocks fell sharply in the US market last night, and following that trend, selling pressure is being seen today in Japan,” said Maki Sawada, an equities strategist at Nomura Securities.

“If the correction continues, the 50,000 point (on the Nikkei) is likely to be viewed as a key support level.”

There were 163 advancers on the index and 60 decliners.

The largest percentage gainers were Omron, up 5.5%, followed by SHIFT, which gained 5.5%.

The largest losers were all suppliers to the tech sector, including Fujikura, down 5.8%, and Sumco, which lost 4.7%.