Japan's Benchmark Indexes Dropped 3%, Jobless Rate Advanced to a Five-Month High

Akira Ito
03 Mar, 2026
Tokyo

 

Japan's benchmark indexes plunged amid escalating tensions in the Middle East and intensifying worries of global inflation. 

The Nikkei 225 Stock Average plunged 3%, the broader Topix declined 2.8%, and the yen weakened to 157.31 against the U.S. dollar.

The long-running covert war between the U.S. and Iran entered a new chapter this weekend, as the joint U.S.-Israel bombings targeted more than 1,200 locations and killed top military and political leaders.

Brent crude oil prices rose 2.8% to $79.78 a barrel and extended a two-day surge by 14% after Iran effectively shut down the Strait of Hormuz. 

About 20% of global oil and gas transits through the narrow passage, which is largely controlled by the Iranian military and used by Asian nations for their energy supplies.   

 

Japan's January Jobless Rate Jumped to a 5-Month High

Japan's jobless rate in January advanced to a five-month high, and the labor force shrank to a five-month low, according to the latest report from the Ministry of Internal Affairs & Communications.

The annual unemployment rate increased to 2.7% from 2.6% in the previous month, and the number of unemployed increased by 60,000 to 1.91 million. 

The weakness in the jobs market was largely driven by an uncertain outlook for exports and the ongoing weakness in the small to medium manufacturing sector. 

Employment fell by 290,000 to 68.2 million, while the labor force shrank by 210,000 to a five-month low of 70.1 million. 

In addition, the jobs-to-applicant ratio dropped to 1.18 from December's estimate of 1.19. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average dropped 3% to 56,331.31, and the broader Topix Index decreased 2.8% to 3,789.16. 

Export-driven companies led decliners in Tokyo trading for the second session in a row. 

Toyota Motor decreased 6.4% to ¥3,693.0, Hitachi Ltd. declined 4.9% to ¥4,817.0, Sony Group dropped 6.3% to ¥3,373.0, and Fast Retailing Co. Ltd. fell 4.6% to ¥64,630.0. 

Mitsui O.S.K. Lines decreased 0.3% to ¥6,035.0, Nippon Yusen KK fell 0.3% to ¥5,585.0, and Kawasaki Kisen Kaisha fell 2.5% to ¥2,593.0.