Against the backdrop of crude oil futures rising above $100 per barrel, the Nikkei 225 traded around ¥1,000 lower from the opening and subsequently widened its losses, falling by more than ¥2,000 at one point. Rising long-term interest rates have also become a factor weighing on the market as a whole.
After crude oil futures in the New York market rose above $100 for the first time in three and a half months, the Nikkei 225 in Japan’s stock market opened sharply lower and subsequently extended its losses.
The Nikkei 225 temporarily fell below ¥64,000, recording a maximum decline of more than approximately ¥2,000 from the previous day’s close.
The three major US stock indexes also fell as the international benchmark for crude oil, WTI, rose, with the effects spilling over into the domestic market. Long-term interest rates also rose, reaching levels close to 3%.
The backdrop includes concerns that fighting between the United States and Iran could be prolonged, as well as uncertainty surrounding the situation in the Middle East.