Sunday, January 30, 2011

Japanese Markets Drop, Oil Gains on Egypt News

Japanese markets have slid on the news coming out of Egypt. Oil futures have also risen about twelve hours before the opening of the markets on Monday morning.
The fears of wider instability in the Middle East appear to be causing traders to sell off their stocks and invest in commodities. Gold rose over $22 in after-hours trading, or over 1%. Similarly, Japanese stocks fell over 1%.
“A sense of uncertainty is widespread in the entire Middle East,” said Tomochika Kitaoka, a senior strategist in Tokyo at Mizuho Securities Co. “People see the Swiss franc as well as the yen as secure currencies, and that is a negative factor.”
The Nikkei 225 Stock Average fell 1.2 percent to 10,238.54 as of 10:53 a.m. in Tokyo. The broader Topix lost 1.1 percent to 909.54, with about six times as many shares declining as advancing.

Cross-posted at World Threats.

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