We are hard pressed to see why falling oil prices are a cause for concern for the USA but it is the biggest producer of oil. We can see the connection for Australia because energy is such a large part of their economy. So why is the biggest impact in terms of percentage change Japan? Japan imports almost all of their energy and yet buying a lower prices results in Japan down 2.8%, Australia down 1.7% and the US down 1.8%.
The market could be wrong (but it is highly risky to bet against it) and there is more going on. Japan profits from lower oil prices so there is a bigger story to tell. It could be Japan’s export orientation but South Korea is only down 1%. Perhaps it is close enough but the relative losses don’t seem to make sense.