Japan’s Nikkei index fell as investor sentiment was affected by tension in the Middle East

Japan’s Nikkei index fell by more than two percent on Monday, affected by a decline in stocks related to the chip manufacturing sector and in light of a decline in risk appetite due to escalating tension in the Middle East.

The Nikkei index fell 2.03 percent, closing at 31,659.03 points. The broader Topix index lost 1.53 percent to 2,273.54 points.

The Standard & Poor’s 500 and Nasdaq indices fell on Friday as data on consumer sentiment deteriorated and the conflict in the Middle East worsened, which led to investors’ reluctance to take risks. While the Dow Jones Industrial Average rose 0.12 percent.

Shares of heavyweight companies linked to chip manufacturing fell, tracking the shares of American technology companies, with Tokyo Electron and Advantest shares falling 3.84 percent and 4.79 percent, respectively.

SoftBank Group shares, which operate in the technology field, fell 2.04 percent.