Global Markets | Japanese stocks plummet as Mideast conflict widens

Japanese stock markets experienced significant declines on Tuesday, marking the steepest drop in months due to escalating geopolitical tensions in the Middle East. The Topix index fell by 3.2% to 3,772.17, while the Nikkei index decreased by 3.1% to 56,279.05, with both indices reflecting investor anxiety following U.S.-Israeli military actions against Iran. Maki Sawada, a strategist at Nomura Securities, indicated that rising crude oil prices, a stronger U.S. dollar, and a weakened yen are raising concerns about potential inflation, which could influence future monetary policy decisions. Every sector on the Tokyo Stock Exchange saw losses, particularly the oil and coal sector, which dropped by 5.5%. Notably, major companies such as Toyota Motor and ANA Holdings also faced substantial setbacks, losing 6.1% and 3.3%, respectively. In a separate development, Sumitomo Pharma's shares plummeted by 19.1%, the largest decline in nearly 12 years, attributed to investor worries about a new share issuance despite positive profit forecasts. Overall, the market sentiment remains bearish, with 219 stocks declining on the Nikkei compared to just six that advanced.