Asian Stocks Fall Amid Middle East Risk Spread... Nikkei Plunges 2% (Comprehensive)

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] On the 6th, major Asian stock markets all fell as Middle East risks spread due to escalating tensions between the United States and Iran.

On the first trading day of the new year, the Nikkei 225 index on the Tokyo Stock Exchange closed at 23,204.86, down 1.91% (451.88 points) from the previous trading day. It showed a sharp decline right after the opening and eventually plunged nearly 2%.

The TOPIX index closed at 1,697.49, down 1.39% (23.87 points), breaking below the 1,700 level.

The Nihon Keizai Shimbun pointed out, "Concerns have grown that relations with North Korea could also deteriorate following the US-Iran tensions, further dampening investor sentiment." As funds flowed into the safe-haven yen, the yen price against the dollar fell to as low as 107 yen at one point.

China's stock market also closed slightly lower. The Shanghai Composite Index fell to around 3,065 during the session but reduced its losses to close at 3,038.41, down 0.012%.

The Hong Kong Hang Seng Index closed at 28,226.19, down about 0.8%. The decline in the Hang Seng Index was the largest since December 4 last year (1.2%). Taiwan's weighted index also closed at 11,953.36, down 1.3% from the previous trading day.

South Korea's stock market also moved significantly. The KOSPI index closed at 2,155.07, down 21.39 points (0.98%). The KOSDAQ index also closed at 655.31, down 14.62 points (2.18%).

As Asian stock markets closed lower, market experts are focusing on the trends in European and US markets. If volatility increases in advanced financial markets, the impact could again spread to Asian stock markets. In the early hours of the 6th (local time), Brent crude oil surpassed the $70 per barrel mark on the London ICE Futures Exchange. The US 10-year Treasury yield continued to decline as the flight to safe assets re-emerged. International gold prices also surged to their highest level since April 2013.

This content was produced with the assistance of AI translation services.