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%).