TOKYO (Kyodo) — Tokyo stocks fell sharply Wednesday morning on selling stirred by overnight declines on Wall Street and concern over heightening tensions in the Middle East.
The 225-issue Nikkei Stock Average dropped 638.21 points, or 1.65 percent, from Tuesday to 38,013.76. The broader Topix index was down 21.15 points, or 0.79 percent, at 2,669.63.
The U.S. dollar climbed to around 144 yen line in Tokyo as the Japanese currency was sold after new Prime Minister Shigeru Ishiba said Tuesday the trend of monetary easing should be maintained, dealers said.
At noon, the dollar fetched 144.00-01 yen compared with 143.52-62 yen in New York and 144.16-19 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.1065-1069 and 159.34-40 yen against $1.1063-1073 and 158.82-92 yen in New York and $1.1115-1116 and 160.25-29 yen in Tokyo late Tuesday afternoon.
On the stock market, the benchmark Nikkei index briefly sank nearly 2 percent, as technology issues tracked the overnight slump of their U.S. counterparts.
The market was also pressured by heightening tensions in the Middle East after Iran launched ballistic missiles at Israel on Tuesday in retaliation for the killings of Hassan Nasrallah, leader of Lebanon’s Hezbollah militant group, among others, analysts said.
“The instability has raised concerns over increasing fuel costs and a slowdown in the global economy, as well as potential supply chain disruptions,” said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
Tokyo stocks fall sharply on Wall St. declines, Middle East concerns
