Japan Market tumbles below 25K

Japan share market finished session at lowest level in 16-months on Tuesday, 08 March 2022, on tracking negative lead from Wall Street overnight as the Russia-Ukraine war continued weighing on investor sentiment. Market sentiments also dampened amid concerns over the potential economic hit of disruptions in the global energy supply as the Russia-Ukraine war continues. Every industry category lost ground, led by oil and coal product, iron and steel, and marine transportation issues.

At closing bell, the 225-issue Nikkei Stock Average stumbled 430.46 points, or 1.71%, to 24,790.95, the first finish below the 25,000 threshold since Nov. 10, 2020 and the lowest closing since Nov. 6 the same year. The broader Topix index of all First Section issues on the Tokyo Stock Exchange declined 34.17 points, or 1.9%, to 1,759.86.

 

Investors are worried about the impact of surging prices of crude oil and other commodities stemming from the escalating conflict in Ukraine. Since Japan relies heavily on energy imports, rising prices could pressure corporate earnings or lead to price hikes of goods.

Nissan Motor dropped 5.5% after saying Monday it will temporarily halt production at its factory in St. Petersburg.

Air transportation issues decreased. Japan Airlines shed 5.8%, while ANA Holdings declined 3.5%.

CURRENCY NEWS: The Japanese yen traded at 115.40 per dollar, following yesterday's weakening from below 115 against the greenback.

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