Tokyo stocks drop on Wall Street selloff, Middle East tension

TOKYO, Oct. 8 (Xinhua) — Tokyo stocks dropped on Tuesday following three days of gains, tracking overnight selloff in the U.S. markets and fueled by concerns over the escalating conflict in the Middle East.
Japan’s benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, lost one percent, or 395.2 points, to close at 38,937.54.
The drop followed the decline in the U.S. market, driven by expectations of a slower pace in Federal Reserve interest rate cuts and escalating tensions in the Middle East.
Financial stocks, such as banks and insurers, fell sharply, while China-related shares also fell on Japan’s market.
The overall market remained vigilant as investors awaited developments regarding the geopolitical landscape and economic indicators, analysts noted.
The broader Tokyo Stock Price Index (TOPIX) also retreated, shedding 40.24 points, or 1.47 percent, to finish at 2,699.15.
Of the listed stocks on the top-tier Prime Market, 1,386 declined, 241 advanced, and 19 remained unchanged. ■