Tokyo Stocks Close Tuesday with Losses

(MENAFN) Tokyo equities closed sharply lower on Tuesday as surging crude oil prices — fueled by persistent fears over Middle East supply disruptions — hammered investor confidence across the board.

The benchmark Nikkei Stock Average, tracking 225 issues, shed 822.13 points, or 1.58 percent, from the previous session to finish at 51,063.72. The broader Topix Index also retreated, losing 44.48 points, or 1.26 percent, to close at 3,497.86.

The selloff was at its most severe mid-session, when the Nikkei briefly plunged more than 1,300 points — more than half again its closing loss — as energy market pressures intensified. Brokers attributed the intraday plunge to U.S. benchmark West Texas Intermediate crude oil futures extending their rally to settle at $102.88 per barrel in New York, marking the commodity’s highest price since July 2022.

Ongoing geopolitical instability across the Middle East continued to stoke fears of potential oil supply constraints, keeping risk sentiment fragile throughout the trading day. The scale of the intraday swing underscored just how acutely energy price volatility is now feeding through to equity markets in Tokyo and beyond.

With oil holding above the psychologically significant $100-per-barrel threshold, analysts warn that prolonged supply concerns could continue to weigh on Japanese stocks in the near term.

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