The Nikkei Stock Average fell more than 2,000 points at one point in the Tokyo market on the morning of the 11th, dropping below ¥64,000. Crude oil futures surged as the situation in the Middle East deteriorated, while worsening investor sentiment drove initial selling.
The Nikkei Stock Average fell back in the Tokyo stock market on the morning of the 11th, at one point dropping more than 2,000 points to ¥63,279.35. The TOPIX also fell sharply, while the Nikkei fell below ¥64,000 for the first time in a week.
Crude oil futures rose against a backdrop of worsening conditions in the Middle East, with WTI, the U.S. benchmark crude grade, briefly climbing to the ¥104-per-barrel range for October delivery. This worsened investor sentiment and triggered selling across the Japanese market.
In the U.S. stock market, technology shares continued to decline, and falls in the major U.S. stock indexes spread to Japanese equities, pushing the market lower.
Market participants said selling had spread, particularly among energy-related stocks, amid expectations that the situation would be prolonged.