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Tokyo Stocks Close Monday in Red
(MENAFN) Tokyo's stock market closed deep in the red on Monday, with the benchmark Nikkei index briefly hemorrhaging more than 5 percent before partially recovering, as crude oil prices surged past a critical threshold amid mounting pessimism over any near-term resolution to the U.S.-Iran conflict.
The 225-issue Nikkei Stock Average shed 1,487.22 points, or 2.79 percent, from Friday's close to finish at 51,885.85. The broader Topix index similarly retreated, dropping 107.35 points, or 2.94 percent, to settle at 3,542.34.
Among the hardest-hit segments on the top-tier Prime Market were securities, transportation equipment, and glass and ceramics product issues, all posting significant losses across the session.
Market analysts attributed the selloff to a dramatic spike in benchmark West Texas Intermediate (WTI) crude oil futures, which vaulted above 100 U.S. dollars per barrel during early Asian trading hours — reigniting fears of runaway inflation across the region's economies.
Those same inflationary concerns rippled through the bond market, triggering a wave of selling that briefly drove the benchmark 10-year government bond yield to 2.39 percent — a level not seen since February 1999.
Equities clawed back a portion of their losses through the afternoon session as WTI futures retreated slightly, though prices stubbornly held above the 100-dollar-per-barrel mark. Analysts cautioned that markets would remain acutely sensitive to any shifts in the Middle East standoff in the sessions ahead.
On the currency front, the U.S. dollar breached the psychologically significant 160-yen threshold for the first time since July 2024 during Friday's New York session, buoyed by safe-haven demand. However, the greenback pulled back to the upper 159-yen range on Monday in Tokyo, after Atsushi Mimura, Japan's vice finance minister for international affairs, issued a pointed verbal warning over the yen's sustained decline and signaled that government intervention remained firmly on the table.
The 225-issue Nikkei Stock Average shed 1,487.22 points, or 2.79 percent, from Friday's close to finish at 51,885.85. The broader Topix index similarly retreated, dropping 107.35 points, or 2.94 percent, to settle at 3,542.34.
Among the hardest-hit segments on the top-tier Prime Market were securities, transportation equipment, and glass and ceramics product issues, all posting significant losses across the session.
Market analysts attributed the selloff to a dramatic spike in benchmark West Texas Intermediate (WTI) crude oil futures, which vaulted above 100 U.S. dollars per barrel during early Asian trading hours — reigniting fears of runaway inflation across the region's economies.
Those same inflationary concerns rippled through the bond market, triggering a wave of selling that briefly drove the benchmark 10-year government bond yield to 2.39 percent — a level not seen since February 1999.
Equities clawed back a portion of their losses through the afternoon session as WTI futures retreated slightly, though prices stubbornly held above the 100-dollar-per-barrel mark. Analysts cautioned that markets would remain acutely sensitive to any shifts in the Middle East standoff in the sessions ahead.
On the currency front, the U.S. dollar breached the psychologically significant 160-yen threshold for the first time since July 2024 during Friday's New York session, buoyed by safe-haven demand. However, the greenback pulled back to the upper 159-yen range on Monday in Tokyo, after Atsushi Mimura, Japan's vice finance minister for international affairs, issued a pointed verbal warning over the yen's sustained decline and signaled that government intervention remained firmly on the table.
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