Japanese Stocks Fall for Second Day, Oil Concerns Still Weighing on Sentiment
Japanese stocks fell for a second straight day on Friday morning, as the market continued to weigh uncertainty surrounding the Iran war and its impact on oil prices. The Topix index fell 0.5% to 3,622.85 at 9:12 a.m. Tokyo time, while the Nikkei 225 fell 1.2% to 52,934.51.
The index's movement this time was thin and divided: of the 1,655 Topix stocks, 777 rose, 785 fell, and 93 were unchanged. Tokyo Electron was the biggest drag on the Topix, falling 3.9%, reflecting stronger pressure on technology stocks.
The pressure on technology stocks came even though US President Donald Trump again extended the deadline for a planned attack on Iranian energy facilities. However, the strong oil rally throughout the month—amid extreme volatility—kept the Japanese market on the defensive, as Japan is highly sensitive to energy import costs and inflation risks.
Sumitomo Mitsui DS Asset Management assesses that market reaction to the US deadline extension is limited, as negotiations are expected to be lengthy and market participants have yet to see strong reasons for optimism. Against this backdrop, oil prices are expected to remain the primary driver of Japanese equity sentiment in the near term.
Source: Newsmaker.id
