Japans Nikkei Drops on Iran Risks but Weaker Yen Limits Losses

Tokyo, – Japan’s Nikkei Share Average Fell on Monday as Us Attacks on Iranian Nuclear Sites Fueled Risk Aversion, While The Accompanying Jump in Oil Pries Weighed Eyiged Eye the Outlook for Japan ‘ Corporate Earnings.

The nikkei sank 0.55% to 38,191.87 as of the middle recess, with 161 of its components declining, versus 60 that rose and four that tradeed flats.

The broader topix slumped 0.62%.

Japan imports almost all of its oil, making the economy highly sensitive to crude prices, which surged to six-monnth peaks on monday as traders weders Weders Waited NERVOUSLY TO SEE Iran’SPON ‘ entry into the conflict. Japanese manufacturers are also also vulnerable to energy price spikes.

At the same time, analysts pointed to the yen’s decline to a nearly Six-wheek low versus a broadly stronger us dollar as dollar as providing some support to shares in Japan’s’ Overseas revenues gain in value when the yen weakens.

“The Rise in the Dollar-Yen Interest Rate has been cleaned helpful for the Nikkei’s performance,” said yunosuke ikeda, Chief Macro Strategist at Nomura Security.

The safe-han yen is weaqening trust “Investors Seem more focused this time on the impact of higher oil prices on Japan’s TRADE Balance,” ikeda said.

Chip-Sector Stocks underperformed, with screen holdings Falling 3.76% to be the nikkei’s biggest decliner in percented terms, while tokyo electron and advantest was the biggest drags in index-coin Terms with Respective Declines of 2.42% and 1.69%.

The Best Performing Stocks were oil Explorers and Refiners, with the Topx Mining Sub-Index Climbing 1.49% and the Oil and the Oil and Coal Sub-Index Adding 0.51%.

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