Japanese stock market falls as Iran crisis and surging oil prices weaken risk appetite

Glonghui March 2｜Japanese stock markets declined as attacks by the United States and Israel on Iran undermined investor confidence and led to a rise in oil prices. Export-oriented companies such as automobile manufacturers and electronics makers were among the main contributors to the decline, while bank stocks also performed weakly. In contrast, shares of oil producers and shipping companies rose. On Monday, the stock market may generally come under pressure as investors flee risk assets. Industries sensitive to oil prices, such as rubber manufacturers and automobile makers, may be hit the hardest. The vice president of Pasol Research Institute stated that the Japanese stock market is particularly vulnerable because the country is "highly dependent on crude oil supplies from the Middle East." Due to rising oil prices, transportation industries such as airlines, shipping, and land transport may face sales pressure, while defensive stocks may provide some support.