Nikkei falls to one-month low as Middle East conflict intensifies
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[TOKYO] Japan’s Nikkei share average slipped on Wednesday to its lowest level in a month as investors sold risk assets amid an intensifying Middle East conflict.
The Nikkei fell 3.5 per cent to 54,340.02 of 0215 GMT, marking its lowest point since Feb 6, and is on track for a third consecutive session of losses, if current momentum persists.
The broader Topix lost 3.68 per cent to 3,633.03.
“Investors sold down risk assets, and in particular, the Nikkei as well as the Kospi, which outperform other major indexes, have become a target of the heavier selloff as they try to book profits,” said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.
Shares in Seoul’s benchmark index dived 7 per cent on Wednesday.
Israeli and US forces pounded targets across Iran on Tuesday, prompting Iranian retaliatory strikes around the Gulf as the conflict spread to Lebanon, rattled global markets, and sent oil prices sharply higher.
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In Japan, chip-related heavyweights led the Nikkei’s decline, with Advantest and Tokyo Electron falling nearly 5 per cent each. Technology investor SoftBank Group lost 6.89 per cent.
All 33 industry indexes slipped, with the oil refinery index falling 7.65 per cent to rank as the worst performer.
Investors scooped up beaten-down software-related shares. Baycurrent jumped 5.7 per cent and Shift gained 1.84 per cent.
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The move is an exact mirror of the US market where their peers such as Salesforce rose overnight, IwaiCosmo’s Shimada said.
Shares of Nidec jumped 5.5 per cent after the electric motor manufacturer warned that it could face 250 billion yen (S$2 billion) in writedowns from a deepening accounting scandal that sparked the exit of its founder and other top executives.
Sony Group rose nearly 1 per cent and Nintendo was up 1.37 per cent.
Among the more than 1,600 stocks traded on the Tokyo Stock Exchange’s prime market, 92 per cent fell, 6 per cent advanced and 1 per cent traded flat. REUTERS
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