Japanese Shares Slide as Oil Prices Surge Again
Japanese stocks fell on Thursday, reversing the prior session’s gains, as oil prices jumped again following attacks on energy facilities in the Middle East—rekindling inflation concerns.
The Nikkei 225 dropped about 2.5% to below 54,000, while the broader Topix slipped roughly 1.5% to around 3,660.
Japan remains highly exposed to oil supply shocks due to its heavy reliance on Middle Eastern imports. A renewed spike in energy prices can quickly worsen the trade balance and lift import-driven inflation, weighing on equity sentiment.
Japanese shares also tracked a sharp overnight selloff on Wall Street, which was triggered by a hotter-than-expected U.S. PPI print and the Federal Reserve’s higher inflation forecasts—developments that narrowed the room for interest-rate cuts and reinforced “higher-for-longer” concerns.
Meanwhile, the Bank of Japan is widely expected to keep its policy rate unchanged today, but markets are watching for any hawkish tilt in its messaging as a weak yen and elevated oil prices raise inflation risks. The combination of a softer currency and higher energy costs could keep price pressures sticky, making BOJ guidance a key driver for both the yen and Japanese equities.
Source : Newsmaker.id
