Japanese Shares Drop as Oil Prices Surge

2026-03-19 00:16 By Jam Kaimo Samonte 1 min. read

The Nikkei 225 Index fell 2.5% to below 54,000, while the broader Topix Index lost 1.5% to 3,660 on Thursday, reversing gains from the previous session as oil prices surged again following attacks on energy facilities in the Middle East, stoking inflation concerns.

Japan remains highly exposed to oil supply shocks due to its reliance on Middle Eastern imports.

Japanese shares also followed a sharp Wall Street selloff overnight, triggered by hotter-than-expected US PPI data and rising inflation forecasts from the Federal Reserve, which narrowed the scope for interest rate cuts.

Meanwhile, the Bank of Japan kept its policy rate unchanged in a widely expected move, though board member Hajime Takata dissented for the second meeting in a row, proposing a 25 basis point hike to 1%, citing upside inflation risks.

Tech stocks led the decline, with sharp losses from Kioxia Holdings (-4.5%), Advantest (-5.4%), Disco Corp (-2.6%), Lasertec (-3.3%) and SoftBank Group (-3.3%).



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Japanese Shares Drop as Oil Prices Surge
The Nikkei 225 Index fell 2.5% to below 54,000, while the broader Topix Index lost 1.5% to 3,660 on Thursday, reversing gains from the previous session as oil prices surged again following attacks on energy facilities in the Middle East, stoking inflation concerns. Japan remains highly exposed to oil supply shocks due to its reliance on Middle Eastern imports. Japanese shares also followed a sharp Wall Street selloff overnight, triggered by hotter-than-expected US PPI data and rising inflation forecasts from the Federal Reserve, which narrowed the scope for interest rate cuts. Meanwhile, the Bank of Japan kept its policy rate unchanged in a widely expected move, though board member Hajime Takata dissented for the second meeting in a row, proposing a 25 basis point hike to 1%, citing upside inflation risks. Tech stocks led the decline, with sharp losses from Kioxia Holdings (-4.5%), Advantest (-5.4%), Disco Corp (-2.6%), Lasertec (-3.3%) and SoftBank Group (-3.3%).
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The Nikkei 225 Index Closes 2.73% Higher
The Nikkei 225 Index went up by 1467 points or 2.73 percent on Wednesday to close at 55168 points. The rise was led by Tokyo Electric Power (16.30%), Mitsubishi Materials (14.28%) and Mitsui OSK Lines (11.71%).
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Japanese Shares Gain on Tech Boost
The Nikkei 225 Index jumped 2.87% to close at 55,239, while the broader Topix Index gained 2.49% to 3,717 on Wednesday, hitting one-week highs, with technology stocks leading the rebound. Investors sought segments of the market least affected by the Middle East conflict, with tech and artificial intelligence seeing renewed interest. Oil prices also retreated after Iraq reached a deal to resume exports via Turkey’s Ceyhan port, easing pressure on oil-importing economies like Japan. Meanwhile, markets are speculating that the Bank of Japan could signal a hawkish bias at its policy meeting this week, as a weak yen and elevated oil prices heightened inflation risks. Elsewhre, data showed Japanese exports rose 4.2% in February year-on-year, exceeding expectations of 1.6% but slowing sharply from January’s 16.8% jump. Top performers included Kioxia Holdings (+8.2%), Fujikura (+4.5%), Advantest (+6.7%), SoftBank Group (+5.8%), and Disco Corp (+4.9%).
2026-03-18