Japanese Stock Market Plunges on Oil Price Concerns... Nikkei Index Falls Below 51,000

On March 23, the Japanese stock market is plunging amid forecasts that the situation in the Middle East may deteriorate further and disruptions to crude oil supply could persist for an extended period.

The Nikkei 225, Japan's leading stock market index, was trading at 51,291.4 as of 10:27 a.m. on this day, down 3.9% from the previous trading session.

On the 18th, a passerby was walking in front of a gas station in Tokyo, Japan. Photo by EPA Yonhap News.

The Nikkei 225 at one point in the morning fell to 50,688.76, dropping below the 51,000 level. This represents a decline of nearly 5% compared to the previous day. According to the Nikkei newspaper, this is the lowest intraday level in about four months since December 30 of last year.

Semiconductor-related stocks such as Advantest and Tokyo Electron, as well as chemical and manufacturing companies, which are significantly affected by rising oil prices, and Fast Retailing, the parent company of Uniqlo, all saw sharp declines.

The TOPIX index was also down 3.45% from the previous trading session, trading at 3,484.97.

An official from Japan's financial sector stated, "As the situation in the Middle East becomes more entangled, concerns are growing in the market that disruptions to crude oil supply will continue," adding, "Japanese stocks, which are highly sensitive to oil prices, have become targets for risk aversion."

On March 20, the Dow Jones Industrial Average on the U.S. stock market declined for a third consecutive trading day, closing at 45,577.47, down 433.96 points from the previous session and marking the lowest level in about five months. On March 21, U.S. President Donald Trump warned that unless Iran fully reopens the Strait of Hormuz within 48 hours, the U.S. would devastate various Iranian power plants, heightening concerns that the war in the Middle East could escalate further.

This content was produced with the assistance of AI translation services.