Hormuz Tensions Weigh on Japanese Stock Market Sentiment
Newsmaker.id - Japanese stocks moved without a clear direction on Monday (July 13th), as tensions in the Middle East escalated again. The Nikkei 225 index fell around 0.2% to around 68,400, while the Topix index rose 0.6% to 4,060.
Market sentiment was weighed down after the United States and Iran launched another missile attack on each other over the weekend. The conflict amid a dispute over shipping through the Strait of Hormuz has pushed global oil prices up more than 3%.
Rising energy prices are a major concern for Japan, which relies heavily on oil imports. This situation risks increasing production costs, intensifying inflationary pressures, and fueling expectations that the central bank will maintain tight monetary policy for longer.
Among individual stocks, Kioxia Holdings fell 1.8%, Taiyo Yuden fell 4.8%, and Yaskawa Electric plunged 14.2%. Conversely, SUMCO Corp rose 7.9%, SoftBank Group strengthened 2%, and Mitsubishi UFJ added 2.4%. Investors are also awaiting the financial reports of major US companies to test the strength of the AI-driven stock rally.
Market Impact :
Japanese Stock Exchange: The Nikkei could remain under pressure if the US-Iran conflict escalates and oil prices continue to rise. Transportation, industrial, and energy-consuming companies are the most vulnerable groups.
Japanese Yen: Rising energy import costs could put pressure on the yen by worsening Japan's trade balance. USD/JPY could strengthen again if the dollar continues to be sought after as a safe-haven asset.
Oil: The risk of shipping disruptions through the Strait of Hormuz could keep Brent and WTI prices high and increase energy market volatility.
Gold: Geopolitical conflicts could support demand for safe-haven assets, but rising oil prices also fuel concerns about inflation and high interest rates, limiting gold's gains. (CP)
