---
title: "Japan’s Nikkei Drops 5% to YTD Low"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280931341.md"
description: "The Nikkei 225 Index fell 5% to below 50,600, marking its lowest point this year. This decline is attributed to escalating Middle East tensions and rising oil prices. The ongoing Iran conflict, coupled with a weakening yen and increasing Japanese government bond yields, has led to speculation about a potential interest rate hike by the Bank of Japan next month. Japan plans to release oil from emergency reserves to address the energy shock."
datetime: "2026-03-30T00:21:46.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280931341.md)
  - [en](https://longbridge.com/en/news/280931341.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280931341.md)
---

# Japan’s Nikkei Drops 5% to YTD Low

The Nikkei 225 Index plunged about 5% to below 50,600 on Monday, falling to its lowest level this year as escalating tensions in the Middle East and surging oil prices continued to weigh on global equities.

The Iran war entered its fifth week with no end in sight, with Iran-backed Houthi militants in Yemen joining the conflict and the US deploying additional troops to the region.

Japan is reeling from the resulting energy shock and is set to begin releasing oil from emergency reserves to mitigate its impact.

Markets also contended with a sharply weakening yen and rising Japanese government bond yields, fueling speculation that the Bank of Japan could raise interest rates as soon as next month.

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