The Nikkei Stock Average was sold down more than 2,000 points at one point in the Tokyo stock market's morning session, weighed down by higher oil prices. WTI broke above $100 a barrel, while expectations for higher U.S. interest rates also fueled selling.
The Nikkei Stock Average fell sharply during the morning session, opening at ¥64,276.82, down ¥994.13 from the previous day, with selling leading across a broad range of stocks. Selling on concerns over higher oil prices and interest rates spread across the market.
Reports that WTI, the U.S. benchmark crude, had broken above $100 a barrel heightened concerns that higher oil prices would accelerate inflation and weigh on corporate earnings, according to market participants.
Higher oil prices strengthened expectations for a Federal Reserve rate hike, and the resulting rise in U.S. interest rates also weighed on the market. Extending the trend seen before the opening, selling led across a broad range of stocks.
Meanwhile, the yen's appreciation has paused, and automaker stocks are trading firmly.