TOKYO: Tokyo stocks ended lower Tuesday, with investors disheartened by aggressive tightening by the Federal Reserve and jittery over economic uncertainty in China.
The benchmark Nikkei 225 index lost 1.81 percent, or 486.54 points, to 26,334.98, while the broader Topix index slid 1.38 percent, or 26.01 points, to 1,863.63.
The dollar fetched 125.57 yen, against 125.37 yen on Monday in New York.
Investors are digesting the hawkish stance of monetary policymakers at the US central bank, who are seen leaning towards more aggressive tightening than previously expected.
Tracking losses on Wall Street, the Nikkei started trading lower, and “falls kept widening after that, amid worries over US interest rate hikes,” Okasan Online Securities said.
Tokyo shares close lower ahead of US data
Other factors included growing uncertainty regarding China’s economy, which “prompted a sell-off particularly among economically sensitive stocks,” Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.
China’s zero-Covid strategy has come under increasing scrutiny since March as surging cases in Shanghai triggered a lockdown of the city’s 25 million inhabitants.
As Tokyo’s Tuesday session drew to a close, however, traders settled into a “wait-and-see mood” ahead of the announcement of US consumer prices data, Okasan said.
Among major shares, Toyota lost 1.52 percent to 2,069.5 yen. Nintendo edged up 0.25 percent to 63,880 yen. Sony Group fell 2.64 percent to 11,405 yen.
Uniqlo operator Fast Retailing plunged 3.17 percent to 56,670 yen. Industrial robot maker Fanuc plummeted 5.57 percent to 20,115 yen.
SoftBank Group gave up 0.86 percent to 5,482 yen. Toshiba firmed 0.62 percent to 5,010 yen.
Comments
Comments are closed for this article.