By Mahmoud Gamal
Mubasher: The Japanese indices closed off Tuesday’s trading session on a lower note, coupled with the decline of oil prices and the rise of yen.
The Nikkei index dropped by 0.4% to 16,052 points. The broader TOPIX index fell by 0.7% to 1,291 points.
Investors are still worried about the economic instability thrashing the Asia-pacific area, especially China and Japan, said markets financial analyst Mohammed Al Shammari, adding that “they have therefore shifted their focus on safe assets, resulting in the rise of yen”.
Yen rose 0.5%, pushing the U.S dollar back that currently stands at 112.3 yen.
Al Shammari noted that yen's gains have jumped 7% since the Bank of Japan imposed negative interest rates on banks by the end of last January
On the same downtrend, oil prices registered lower rates on Tuesday’s trading session, battered by increasing oil supply globally, namely after Iran decided to boost its oil output by 500,000 barrels.
Brent crude oil dropped 1.9% to $34.02 per barrel, while WTI crude oil slipped 2.07% to $32.70.
The Iranian production undoubtedly will put more pressure on prices than the existing affecting market movements all over the world.
Translated by Ahmed El-Sayed Ali
