TOKYO, March 19 (Xinhua) -- Tokyo stocks closed sharply lower on Thursday, with the benchmark Nikkei stock index plunging over 3 percent. Analysts attributed the selloff to surging crude oil prices, the U.S. Federal Reserve's decision to hold interest rate steady, and investor caution ahead of a three-day weekend in Japan.
The 225-issue Nikkei Stock Average ended down 1,866.87 points, or 3.38 percent, from Wednesday at 53,372.53. The broader Topix index finished 108.01 points, or 2.91 percent, lower at 3,609.40.
On the top-tier Prime Market, pulp and paper, wholesale trade, and glass and ceramics product issues logged notable losses.
The crude oil price surge piled pressure on the stock market. With oil prices remaining firm, concerns over an inflation-driven economic slowdown continued to weigh on sentiment.
Stocks also fell as hopes for a U.S. interest rate cut faded, analysts say. The U.S. Federal Reserve voted to hold the benchmark federal funds rate steady amid uncertainty surrounding the Middle East conflict, removing a source of support for Tokyo stocks.
Analysts also pointed to Japan's upcoming three-day weekend. Selling accelerated as investors moved to reduce positions amid lingering concerns over a potential military action over the weekend. ■
