TOKYO – The Nikkei stock index dropped more than 2 percent in the early hours of Tuesday due to worries about the economic effects of rising oil prices as tensions in the Middle East intensified.
The Nikkei Stock Average, which consists of 225 issues, dropped by 1,329.97 points, equivalent to 2.29 percent, ending at 56,727.27 from Monday. The wider Topix index declined by 87.28 points, or 2.24 percent, reaching 3,811.14.
The U.S. dollar temporarily rose to the middle of the 157 yen range in Tokyo as investors sought safety after the weekend attacks by the U.S. and Israel on Iran.
At midday, the dollar was traded at 157.23-24 yen, whereas it stood at 157.28-38 yen in New York and 156.98-157.00 yen in Tokyo at 5 p.m. on Monday.
The euro was traded at $1.1694-1696 and 183.86-91 yen compared to $1.1684-1694 and 183.97-184.07 yen in New York, and $1.1715-1717 and 183.91-95 yen in Tokyo late Monday afternoon.
On the financial market, every sector declined due to growing worries about inflation driven by the weak yen and high oil costs.
The Nikkei index increased its decline by the end of the morning trading session as investor confidence was affected by doubts regarding a solution to the ongoing dispute, with the Strait of Hormuz, a crucial route for oil and gas transport, practically closed.
jasdooit 
Leave a comment