Middle East Tensions Fuel Global Market Decline
Tensions in the Middle East are driving up oil prices and impacting global markets. Asian shares and US futures declined as a result of a surge in Houthi attacks on oil facilities and utilities in Saudi Arabia's southern region, escalating a renewed conflict between the US ally and Iranian-backed rebels in Yemen.
The Nikkei 225 index in Tokyo fell by 1.7% to 65,269.33 due to major exporters being sold following a surge in the value of the Japanese yen. Toyota Motor Corp. shed 4.1%, while electronics maker Panasonic Holdings Corp. fell 5.8%. The yen has gained value against the dollar over the past few days on expectations that the US and Japanese governments might intervene to prevent further weakening.
The Japanese economy grew at a slightly faster annual pace in the April-June quarter, at 1.4%, according to revised data. This reflects stronger business investment than previously reported. However, overall investment still contracted, at minus 0.9%.