Japan's Nikkei index drops 5.2% as oil prices spike
Japan's Nikkei 225 index just dropped 5.2%, its third-biggest single-day fall ever, losing nearly 2,900 points on March 9, 2026.
The sharp slide comes as oil prices spike due to Middle East tensions and shipping disruptions, fueling worries about stagflation (that's when inflation rises but economic growth stalls).
Japan's reliance on imported oil
Japan relies heavily on imported oil, so a sharp rise in crude oil prices hits hard, raising living costs and making it tougher for the economy to grow.
Analysts said these rising oil prices are already factoring into growth slowdown expectations.
Nikkei takes a bigger hit than other Asian markets
The Nikkei has taken a bigger hit than other Asian markets lately, falling over 6% in just four days, more than both Hong Kong and Australia.
Big names like Advantest and Tokyo Electron also saw their shares drop, showing how sensitive Japan is to global energy shocks.