Nikkei Plunges as Brent Surges, Cyclical Sectors Lead Declines
Japanese stocks closed sharply lower on Thursday, with the Nikkei 225 down 3.57% in Tokyo. The decline was led by the paper & pulp, transportation, and communications sectors, reflecting a return to risk-off mode as soaring energy prices weighed on equity sentiment.
Among the gainers, BayCurrent Consulting rose 2.73% to 4,549, Furukawa Electric gained 2.37% to 29,400, and Inpex added 0.53% to 4,700, hitting a record high. However, pressure from the majority of stocks weighed on the index, with a negative breadth: 3,393 stocks declined compared to 314 that rose, and 100 were unchanged.
The sharpest declines occurred in Sumitomo Metal Mining (-8.77%), Taiheiyo Cement (-8.68%), which hit a 52-week low, and Tokyo Electric Power (-8.41%). The sharp declines in cyclical and materials stocks indicate the market is readjusting demand expectations and input costs amid energy volatility.
In commodity markets, Brent May futures surged 5.81% to US$113.62, while WTI May futures rose 1.05% to US$96.46. April gold fell 2.58% to US$4,769.66, adding to the pressure on non-yielding assets as the dollar and yields become key drivers. Despite the sharp decline in the index, Nikkei Volatility Index only fell 1.70% to 32.44, indicating that option premiums remain high, albeit slightly easing.
In FX, USD/JPY fell slightly to 159.64 and EUR/JPY fell to 182.95. US dollar index futures rose 0.16% to 100.04, in line with the strengthening dollar that often accompanies global risk-off. (alg)
Source: Newsmaker.id
