Nikkei Weakens, Automotive and Electronics Stocks Under Pressure
Japan's Nikkei index opened slightly lower at the start of the week, weighed down by pressure in the automotive and electronics sectors amid market concerns about the potential for a prolonged Middle East conflict. Negative sentiment also stemmed from rising energy prices, which continue to pressure the outlook for production costs and purchasing power.
The Nikkei fell 0.1% to 53,762.40. Several large stocks were the main drags, with Nissan Motor falling around 3.1% and Nidec Corp. falling 2.8%. The weakness in these energy-sensitive stocks reflected investor concerns about the knock-on effects of the surge in global oil prices.
The Japanese market is highly sensitive to energy volatility due to its dependence on imports. This situation has become even more of a concern after the Japanese government decided to begin releasing national oil reserves to mitigate supply disruptions and fuel price spikes caused by the war, which has impacted energy flows from the Gulf region.
In the currency market, the US dollar was trading at 159.49 yen, slightly higher than 159.40 yen at the close of the Tokyo stock market on Friday. The yen's continued weakness is also a concern, as it could increase pressure on Japanese import costs, especially while oil prices remain high.
For now, investors are still focused on monitoring developments in Iran and the Japanese government's response to the conflict. As long as energy prices remain high and geopolitical risks persist, Japanese stock movements could remain fragile, particularly in sectors most impacted by rising energy costs and global uncertainty. (asd)
Source: Newsmaker.id
