Nikkei Drops as Middle East Conflict Weighs on Sentiment
The Nikkei 225 index fell approximately 0.7% to 68,732.71 during Tuesday's trading (August 18), tracking Wall Street's decline in the previous session. Investors remained cautious as Middle East tensions reignited and negotiations between the United States and Iran remained deadlocked.
Market sentiment deteriorated after Iranian officials signaled that escalation could intensify if diplomatic efforts failed. This prompted investors to reduce exposure to risk assets and reassess potential disruptions to global energy markets.
Significant pressure was observed among Japanese technology stocks. Screen Holdings fell about 2.9% and Lasertec dropped 2.8%, while Nippon Building Fund lost approximately 2.4%, collectively weighing on the index's overall performance.
The Nikkei's decline also followed a correction on Wall Street, driven by concerns over rising US bond yields and persistently high oil prices resulting from geopolitical risks. This combination heightened investor caution regarding high-valuation stocks.
In the foreign exchange market, the yen remained relatively stable, with the USD/JPY pair trading around 159.38—slightly lower than the previous New York close of 159.45.
Newsmaker Analysis: The current Nikkei correction is largely driven by external factors, particularly the weakness on Wall Street and the escalating risk of a US-Iran conflict. Until Middle East tensions subside, volatility in Japanese stocks—especially in the technology sector and among stocks sensitive to shifts in global sentiment—is likely to remain high. (asd)
Source: Newsmaker.id
