The Nikkei Average fell more than ¥2,000 at one point in Tokyo trading on the 11th, closing ¥1,801 lower than the previous day at ¥63,469.39. Higher oil prices and a weaker yen were cited as factors that dampened investor sentiment.
The Nikkei Average fell more than ¥2,000 from the previous day's level at one point in Tokyo stock trading on the 11th and remained sharply lower thereafter. The morning closing price was ¥1,801 below the previous day at ¥63,469.39. Higher oil prices were cited as a factor that cooled investor sentiment and expanded selling.
Major U.S. stock indexes also fell across the board, while futures for WTI, the U.S. benchmark crude oil, briefly rose above $100 against the backdrop of higher oil prices. Domestic securities industry officials said that rising U.S. interest rates following the increase in oil prices also appeared to have prompted selling in the stock market.
In the Tokyo foreign exchange market, the yen weakened to the low ¥154 range against the dollar. Selling of the yen and buying of the dollar, driven by awareness of the interest-rate differential between Japan and the United States, intensified, with the rate at around ¥154.32 to the dollar as of 11 a.m.
Market participants, meanwhile, said that uncertainty over the situation in the Middle East and the outlook for oil prices was prompting a broader move to limit holdings of risk assets, and share prices fell across a wide range of sectors.