The Nikkei 225 Index Closes 3.53% Lower

The Nikkei 225 Index dropped -1950 points or 3.53 percent on Thursday to close at 53289 points. Losses were led by Pacific Metals (-8.35%), Tokyo Electric Power (-8.33%) and Taiheiyo Cement (-8.26%).

The Nikkei 225 Index fell 3.38% to close at 53,372, while the broader Topix Index lost 2.91% to 3,609 on Thursday, reversing gains from the previous session as oil prices surged again following fresh attacks on energy facilities in the Middle East, stoking inflation concerns. Japan remains highly exposed to oil supply shocks due to its reliance on oil imports from the Middle East. 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 (-4.4%), Advantest (-4.6%), Disco Corp (-1.6%), Lasertec (-2.6%) and SoftBank Group (-5.1%).

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%).