Nikkei 225 drops 5.5% in worst week since last April
Japan's Nikkei 225 just had its worst week since last April, dropping 5.5% despite a small Friday rebound.
The main reason? Ongoing conflict in the Middle East has rattled global markets and hit Japan especially hard.
Japan's oil dependency makes it vulnerable to Middle East tensions
Japan relies heavily on imported oil, so disruptions in the Middle East have pushed up oil prices and risk increasing inflation in Japan.
That's made things tricky for both the Bank of Japan and anyone watching the yen, while investors are steering clear of riskier bets.
Energy stocks suffer, but tech shows resilience
Energy stocks took a hit as oil prices spiked: Japan Petroleum Exploration fell 2.6%.
But tech was a bright spot: Fujitsu and NEC shares jumped over 5%, and Rohm soared after news of an $8.3 billion takeover bid from Denso.
Analyst Shota Sando says things could settle down if oil stays under $100 a barrel, but for now, uncertainty is driving big swings.