Market Overview - The Nikkei average fell 7% to a two-month low, closing at 51,740.46, while the Topix slipped 5.6% to 3,508.72, amid a broad selloff driven by rising oil prices and fears of inflation and economic slowdown [1][2][7] - The Nikkei average futures dropped as much as 7.8%, nearing a level that could trigger a trading suspension [1][7] Oil Market Impact - Oil prices surged approximately 20% in early trading, reaching their highest since July 2022, driven by the U.S.-Israeli conflict with Iran, which raised concerns about supply disruptions through the Strait of Hormuz [2][7] - The ongoing conflict has led to oil prices exceeding $100 per barrel, prompting market fears regarding inflation and its impact on corporate profits [2][7] Sector Performance - Chip-related shares experienced significant declines, with Advantest and Tokyo Electron falling by 12.84% and 8.83%, respectively [3][7] - Bank shares also dropped, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group losing 7.29% and 6.6%, respectively [6][7] - In contrast, oil explorer Inpex saw a rise of 1.88%, and the Topix's mining index increased by 0.95%, being the only rising index among the Tokyo Stock Exchange's 33 industry sub-indices [7]
Nikkei drops 7% as surge in oil prices fans economic slowdown fears
The Economic Times·2026-03-09 03:28