The Nikkei 225 fell about ¥1,000 in the morning before extending its losses and recording a decline of more than ¥2,000. Crude oil topped $100 a barrel, while long-term interest rates also rose to nearly 3%.
After crude oil futures in the New York market rose above $100 a barrel for the first time in three and a half months, the Nikkei 225, Japan’s leading stock index, opened sharply lower and extended its losses thereafter.
The Nikkei 225 fell more than ¥2,000 at one point, dropping below the ¥64,000 level. This heightened concern among market participants in Japan and overseas.
The prolonged fighting between the United States and Iran has been cited as a factor behind the rise in crude oil prices, with WTI futures moving above $100 a barrel. The three major U.S. stock indexes fell in tandem, affecting the Japanese market as well. In Japan’s bond market, long-term interest rates rose, bringing the 3% level back into view.