Tokyo stocks fall in morning on stalling US-Iran talks, inflation fears
TOKYO (Kyodo) -- Tokyo stocks fell Tuesday morning, as stalled negotiations between the United States and Iran to end the war and inflation concerns p
Tokyo stocks experienced a sharp decline on Tuesday morning as stalled US-Iran negotiations and inflation concerns fueled selling. The Nikkei 225 index dropped 1,121.71 points, or 1.62%, to 68,098.54, while the broader Topix index decreased by 19.00 points, or 0.45%, to 4,165.11. The U.S. dollar gained strength, trading near 159 yen against the Japanese yen, driven by heightened Middle East tensions and a flight-to-safety demand.
The euro and euro exchange rates remained relatively stable, with the euro-euro exchange rate hovering around 184.65 and 184.55 yen, respectively. Concurrently, the yield on the 10-year Japanese government bond surged to 2.945%, marking its highest level since October 1996, reflecting U.S. Treasury yields rising due to inflation worries stemming from volatile oil supplies.
President Donald Trump's announcement that he would not seek an extension of the US-Iran understanding, which had expired earlier that day, further dampened investor sentiment across various sectors. West Texas Intermediate crude oil futures skyrocketed above $80 per barrel, contributing to the upward pressure on bond yields and adversely impacting Tokyo stocks, with some real estate shares reaching their lowest point of the year.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
