Japan’s Nikkei Stock Average (Nikkei 225) has declined as oil prices rose due to uncertainty surrounding a potential conflict involving Iran. Reuters reports that the index is on track for its largest weekly drop in over a month.
During the midday break on Friday, Tokyo’s Nikkei index fell by 0.3 percent. This brings the index’s decline for the week to approximately 4 percent—the steepest weekly drop since the week ending July 17.
Meanwhile, the broader TOPIX index also fell by 0.1 percent, bringing its total decline for the week to 3.4 percent.
Maki Sawada, a strategist at Nomura Securities, told Reuters, “Investors may be locking in profits ahead of the weekend, as both oil prices and bond yields remain high due to the uncertainty surrounding the situation in the Middle East.”
Among the 33 sectors on the Tokyo Stock Exchange, the shipping sector performed the best, with share prices rising by 2.8 percent. This surge in shipping stocks was driven by expectations that freight rates could rise due to the potential closure of the vital Strait of Hormuz shipping lane.
