The aftermath of the US-Israel joint airstrikes on Iran affects the market, with the Japanese Nikkei Index falling for two consecutive days.

After the US and Israel conducted joint airstrikes on Iran, becoming a major factor in the Japanese stock market, the Nikkei 225 index declined for two consecutive days. This reflects increased instability in the Middle East, worsening investor sentiment, and directly impacting the Japanese stock market.

As of 11:20 a.m. on March 3, the Nikkei index fell about 2.5% from the previous trading day’s close, to 56,622 points. The index, which fluctuated around 58,000 points during the previous session, failed to break through the 57,000-point level and declined. This decline is interpreted as investors reacting to geopolitical risks in the Middle East, leading to increased market uncertainty.

The market is especially concerned about rising oil prices and the potential for a global recession. As a key oil supplier, tensions in the Middle East significantly influence energy prices. The Nihon Keizai Shimbun analysis indicates that this has caused most Japanese stocks to decline.

Additionally, the yen continues to weaken, with the USD/JPY exchange rate rising slightly. At the same time, the exchange rate increased by 0.3 yen from the previous day, to 157.3 yen. While this may benefit Japanese export companies, yen depreciation also risks triggering higher domestic consumer prices.

Whether the Nikkei 225 can stabilize in the future depends on the development of the Middle East situation, oil prices, and the global economic outlook. Investors should closely monitor these external factors and adopt cautious asset allocation.