Japan’s Nikkei share average fell for the fourth straight day on Tuesday, capping its worst month since the 2008global financial crisisas the widening Middle East war weighed on sentiment.
The benchmark Nikkei 225 Index fell 1.6% to close at 51,063.72, bringing its cumulative loss in March to 13.2%, the most since October 2008. The broader Topix slid 1.26% to 3,497.86.
U.S. technology shares declined overnight, dragging Wall Street indexes broadly lower, as the war in the Middle East escalated. Iran attacked a fully-loaded crude oil tanker in Dubai on Monday, setting it ablaze.
Japanese shares briefly found support after the Wall Street Journal reported that U.S. President Donald Trump had told aides he was willing to end the military campaign against Iran even if the Strait of Hormuz remains largely closed.
“Semiconductor-related stocks fell sharply in the U.S. market last night, and following that trend, selling pressure is being seen today in Japan,” said Maki Sawada, an equities strategist at Nomura Securities.
“If the correction continues, the 50,000 point (on the Nikkei) is likely to be viewed as a key support level.”
There were 88 advancers on the Nikkei against 135 decliners. The largest losers were all suppliers to the tech sector, including Fujikura, down 9.2%, Furukawa Electric , 7% lower, and Sumitomo Electric, which lost 6.9%.
The largest gainers were SHIFT, up 3.4%, followed by Teijin Ltd, which advanced 3.4%.
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