Nikkei index fell as investor sentiment was affected by tension ‎in Middle East

Japan’s Nikkei index fell by more than 2% today, Monday, affected by the decline in stocks related to the chip manufacturing sector and in light of the decline in appetite for risk due to escalating tension in the Middle East.

According to Reuters, the Nikkei index fell 2.03 percent to close at 31,659.03 points. The broader Topix index lost 1.53 percent to 2,273.54 points.

Takehiko Masuzawa, head of trading at Phillip Securities in Japan, said: “In light of the rising risks for the Middle East, investors are preparing for further declines in the markets and reducing their long-standing positions in stocks.”

The Standard & Poor’s 500 and Nasdaq indices fell on Friday as data on consumer sentiment deteriorated and the conflict in the Middle East worsened, which led to investors’ reluctance to take risks. While the Dow Jones Industrial Average rose 0.12 percent

Shares of heavyweight companies linked to chip manufacturing fell, tracking the shares of American technology companies, and shares of Tokyo Electron and Advantest fell 3.84 percent and 4.79 percent, respectively.

The shares of SoftBank Group, which operates in the field of technology, fell 2.04 percent.