Tokyo, Japan– Tokyo shares plunged Monday, tracking a weak lead from Wall Street fueled by concerns of a regional escalation in the conflict between Israel and Hamas.
The benchmark Nikkei 225 index dropped 2.03 percent, or 656.96 points, to 31,659.03, while the broader Topix index slipped 1.53 percent, or 35.21 points, to 2,273.54.
The dollar stood at 149.48 yen, compared with 149.53 yen in New York on Friday.
Traders sold shares across the board, as Israel moved toward launching ground offensive in Hamas-controlled Gaza, which is already facing a deep humanitarian crisis.
“The tension in the Middle East is escalating,” Daiwa Securities said. “Investors are selling shares to avoid risks.”
Soaring geopolitical risks saw a sell-off in US tech shares, with the Nasdaq slipping 1.2 percent on Friday.
“The market opened sharply lower due to the tensions in the Middle East and renewed caution about inflation,” IwaiCosmo Securities said.
“There was little appetite for dip-buying,” it said.
Most shares fell on the Tokyo Stocks Exchange.
Chip-testing equipment maker Advantest sank 4.79 percent to 4,351 yen and chip-making equipment manufacturer Tokyo Electron gave up 3.84 percent to 20,395 yen.
High-tech investor SoftBank Group fell 2.04 percent at 6,375 yen, Sony Group dropped 1.87 percent to 12,610 yen and Panasonic dived 3.18 percent to 1,565.5 yen.
Toyota lost 1.02 percent to 2,660 yen and industrial robot maker Fanuc retreated 2.19 percent to 3,968 yen.
But rising oil prices boosted energy-related stocks, with energy developer Inpex up 2.70 percent to 2,131.5 yen and Japan Petroleum Exploration jumping 2.93 percent to 5,270 yen.