Tokyo stocks fall after US attacks Iran, oil prices surge

The Mainichi

23-06-2025

TOKYO (Kyodo) -- Tokyo stocks dropped Monday, hit by concern over heightened Middle East tensions and surging oil prices after the United States attacked Iranian nuclear facilities, though a weakening yen helped trim some losses.
The 225-issue Nikkei Stock Average ended down 49.14 points, or 0.13 percent, from Friday at 38,354.09. The broader Topix index finished 10.08 points, or 0.36 percent, lower at 2,761.18.
On the top-tier Prime Market, decliners were led by electric power and gas, nonferrous metal and iron and steel issues.
The U.S. dollar hit a one-month high in the lower 147 yen range in Tokyo as heightened tensions in the Middle East prompted investors to seek the currency, seen as a safe haven in times of emergency, dealers said.
Stocks dropped after the U.S. airstrikes on Iran over the weekend fueled fears of higher crude oil prices hurting the Japanese economy as Tehran may take retaliatory steps and close the Strait of Hormuz, a key waterway for oil transportation, brokers said.
The benchmark West Texas Intermediate crude surged about 5 percent from late last week to hit the $78 level per barrel, around a five-month high, in after-hours trading in New York on Sunday.
Many investors were nervous and took a wait-and-see stance as Iran has yet to clearly respond to the U.S. attack, brokers said.
"If the Strait of Hormuz is closed, the Asian economy will be negatively affected by rising oil prices, possibly leading to lower Japanese stocks," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
Heavyweight semiconductor-related issues also drew selling following a report Friday that the U.S. administration told major chipmakers it is considering revoking waivers that allow them to send chipmaking technology to China.
Losses were latter trimmed by the buying of some export-linked machinery issues on a weaker yen, which increases exporters' overseas profits when repatriated.