TOKYO, June 23 (Xinhua) -- Japan's key stock index dropped on Monday, sliding over 300 points at one stage in early Tokyo trading, triggered by heightened geopolitical tensions after the U.S. launched strikes on Iranian nuclear facilities.
The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, fell to a touch above the 38,000 mark in the morning trading before dip buying emerged to narrow the decline.
The escalation of tensions in the Middle East has raised concerns among investors about potential disruptions to global oil supply, prompting crude oil futures in New York to jump more than 4 percent.
Surging oil prices have raised concerns about corporate earnings in Japan, especially in energy-sensitive sectors.
Semiconductor-related stocks, which had driven a 1.5-percent rise in the index the previous week, faced strong profit-taking pressure. Meanwhile, defense-related stocks gained ground amid the regional unrest.■
