The Nikkei Average fell more than ¥1,800 at one point on the Tokyo Stock Exchange amid worsening Middle East tensions, with selling spreading mainly across technology stocks.
The Nikkei Stock Average fell more than ¥1,800 from the previous day’s close at one point in Tokyo trading on the 2nd. The decline was driven by worsening Middle East tensions, which prompted a broad shift among investors toward risk aversion.
Fighting between the United States and Iran has reportedly flared again since the US military attacked Larak Island. As instability in the Middle East drove oil prices higher, expectations for rising interest rates strengthened globally, and declines in semiconductor-related technology stocks stood out.
Stocks were broadly sold across sectors other than technology as well, with 9 in 10 Prime Market issues on the Tokyo Stock Exchange declining, highlighting the weakness across the market as a whole.