Nikkei plummets 5% amid oil price surge and geopolitical tensions. Japan's benchmark index fell to a one-month low as crude prices jumped over 25% due to Middle East conflict concerns and supply cuts by major producers. The Nikkei dropped 5.2% to 52,728.72 while the broader Topix declined 3.8%. Chip stocks led losses with Advantest and Tokyo Electron falling over 6%, while banking shares also retreated. Investors fear prolonged oil prices above $100 per barrel will pressure corporate profits and trigger economic slowdown. All 33 Tokyo Stock Exchange industry sub-indices fell, with nonferrous metals hit hardest. The sharp reversal comes just two weeks after both indices hit record highs on stimulus expectations and AI-driven optimism.
