Nikkei Plunges 6% as Chip and Financial Shares Pressured
The Nikkei Stock Average fell sharply by 6.0% on Monday, March 9, to 52,270.16. The decline was triggered by concerns about rising energy prices amid the Middle East conflict, as well as new signs of a weakening US labor market, which weighed on risk sentiment.
Chip and financial sector stocks led the decline. Kioxia Holdings plunged 10%, SoftBank Group fell 10%, while Mizuho Financial Group fell 7.4% amid widespread selling.
In the foreign exchange market, the US dollar was at 158.39 yen, compared to 157.82 yen at the close of the Tokyo stock market last Friday. Movements in the yen and dollar are a focus because they have the potential to impact the earnings prospects of issuers, especially those sensitive to exchange rates.
Investors are now closely monitoring developments in Iran, oil price dynamics, and the Japanese government's policy measures to respond to rising energy costs. Market direction is expected to be heavily influenced by whether energy price pressures persist and how authorities respond to risks to inflation and domestic purchasing power. (asd)
Source: Newsmaker.id
