Japanese stocks experienced a significant decline on Monday, with the Nikkei 225 index falling 2.8%. The downturn was largely influenced by growing concerns over geopolitical tensions, particularly the escalating situation in the Middle East, and the subsequent rise in energy costs.
Chip-related stocks were among the hardest hit, contributing to the broad market sell-off. Investors reacted to fears that ongoing conflicts could disrupt global supply chains and further impact energy prices, creating uncertainty in the financial markets. The broader market sentiment reflected a cautious approach as traders assessed the potential economic ramifications of the intensifying geopolitical landscape.