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Japanese shares tumble after Iran attacks U.S. forces in Iraq

Published 01/08/2020, 09:24 AM
Updated 01/08/2020, 09:32 AM
Japanese shares tumble after Iran attacks U.S. forces in Iraq

Japanese shares tumble after Iran attacks U.S. forces in Iraq

By Stanley White
TOKYO, Jan 8 (Reuters) - Japanese shares tumbled on
Wednesday by the most in almost a year after Iran launched
missile attacks on U.S. forces in Iraq, increasing the risk of a
broader conflict in the Middle East ensnaring the United States
and its allies.
At 0120 GMT the Nikkei index was down 2.34% at 23,024.98,
on course for its biggest one-day percentage decline since March
2019. The index broke below the psychologically important 23,000
mark for the first time since November.
The industrial and consumer discretionary sectors paced
broad-based declines as shares of industrial robot maker Fanuc
Corp 6954.T and apparel retailer Fast Retailing Co Ltd
9983.T fell.
Iran launched a missile attack on U.S.-led forces in Iraq,
hours after the funeral on Tuesday of Iranian commander whose
killing in a U.S. drone strike has raised fears of a wider war
in the Middle East. Tehran fired more than a dozen ballistic missiles from
Iranian territory against at least two Iraqi military bases
hosting U.S.-led coalition personnel, the U.S. military said on
Tuesday.
Iran's Revolutionary Guards confirmed that they fired the
rockets in retaliation for last week's killing of Qassem
Soleimani, according to state TV.
"Investors are unwinding long positions built up last year,"
said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ
Kokusai Asset Management Co in Tokyo.
"There is concern about what comes next in the Middle East.
Another concern is oil prices will skyrocket at a time when
Japan's manufacturing sector is weak, which is a negative for
the corporate sector."
There were 222 decliners on the Nikkei index against 2
advancers on Wednesday.
The largest percentage losses in the index were maritime
shipper Kawasaki Kisen Kaisha Ltd 9107.T down 5.14%, followed
by chemicals maker Tosoh Corp 4042.T losing 4.77% and medical
device maker Olympus Corp 7733.T down by 4.39%.
The percentage gainers in the index were oil and natural gas
developer Inpex Corp 1605.T up 1.06%, followed by oil refiner
JXTG Holdings Inc 5020.T up by 0.15%.
U.S. crude CLc1 surged by 4.08% to $65.28 a barrel after
the Iranian attacks, which could raise costs for end users but
could boost earnings for producers and refiners.
The broader Topix index .TOPX fell 2.32% to 1,685.47, also
the biggest percentage decline since March last year.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.51 billion, compared to the average of
1.11 billion in the past 30 days.

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Iran fires rockets at Iraqi air base hours after funeral of
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