Nikkei Slumps as Oil Tops $100 Amid Middle East Escalation

The Japanese Nikkei share average declined by 0.8% to 64,597.46 at the end of the morning session on Thursday due to rising oil prices and expectations of a faster pace of monetary tightening by the Bank of Japan.

The broader Topix index fell 0.3% to 4,032.89 as global markets came under pressure from crude oil prices crossing $100 a barrel amid escalating tensions in the Middle East conflict.

Nomura Securities strategists pointed out that higher crude oil prices and interest rates were weighing on Japanese equities.