Tokyo shares fell sharply on Monday as investors worry that the Iran conflict is set to escalate and further disrupt oil supplies. Japan relies heavily on imports of crude from the Middle East.
The benchmark Nikkei 225 index closed at 51,515, down 3.48 percent from Thursday. Friday was a national holiday.
Investors sold across the board. At one point the index lost 5 percent. The tumble marked the second straight trading day of declines.
Meanwhile, the yield on 10-year Japanese government bonds climbed to 2.3 percent at one stage. It’s a level not seen in about two months.
Investors are concerned that higher crude oil prices could accelerate inflation in Japan.
AloJapan.com