Institution: Middle East conflict may pose greater challenges for Japan

Golden Ten Data, March 6 – Nicholas Gwee, Portfolio Strategist at RBC Wealth Management, stated that given the Middle East conflict, Japan faces greater challenges than other countries in the region because it is a net oil importer. He pointed out: “(Japan) imports more than 90% of its crude oil from the Middle East, with over 60% transported through the Strait of Hormuz. Japan also relies on the Middle East for supplies of liquefied natural gas and naphtha.” Gwee said that if the conflict continues, the industries most affected would include banking and financial services, aviation and transportation, shipping, energy-intensive manufacturing, refining and petrochemicals, as well as electronics and export-oriented industries. He added: “If the conflict drags on and restricts energy supplies, the Japanese stock market will continue to be under pressure.”