Tokyo stocks fall over Wall Street declines, Middle East conflict concerns

Tokyo stocks dropped on Wednesday, tracking overnight declines in the US and fueled by concerns over the widening regional conflict in the Middle East.

Japan’s benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, lost 2.18 per cent, or 843.21 points, to close at 37,808.76, Xinhua news agency reported.

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The drop followed the decline in the US market, driven by escalating tensions in the Middle East, which led to widespread risk-averse selling.

The US market reacted to an announcement by the Israeli military on Tuesday that Iran had fired missiles at Israel, prompting broad selling by investors seeking to avoid risk.

The fall in Apple shares in the US market also led to significant declines in electronic component makers in the Japanese market.

The broader Tokyo Stock Price Index (TOPIX) also fell, shedding 38.82 points, or 1.44 per cent, to finish at 2,651.96.

Of the listed stocks on the top-tier Prime Market, 1,370 declined, 248 advanced, and 26 remained unchanged.