Japan's Nikkei Index Falls Sharply as Middle East Conflict Concerns Weigh on Markets

Tokyo — Japan’s Nikkei Stock Average, or Nikkei 225, fell 3,880.38 points, or 6.98 per cent, from Friday’s (6 March) close, finishing the morning session at 51,740.46.

Meanwhile, the broader Topix index declined 208.21 points, or 5.60 per cent, to 3,508.72.

Brokers attributed the sharp decline in the Nikkei index to pressure stemming from crude oil futures volatility. US West Texas Intermediate (WTI) crude futures temporarily exceeded $119 per barrel in New York on Sunday (8 March), reaching their highest level since June 2022, amid concerns that escalating conflict in the Middle East could disrupt supply chains and oil production.

The spike in crude prices reflected investors’ concerns over potential supply disruptions stemming from geopolitical tensions in the Middle East region, weighing heavily on Japanese equity markets as risk sentiment deteriorated across Asia.