TOKYO: Japan’s Nikkei index ended at a more than one-month low on Wednesday, extending losses for a fourth straight session, as investors awaited a US Federal Reserve policy decision later in the day that could see a much more hawkish shift.
The Nikkei share average dropped 1.14% to close at 26,326.16, near the day’s low. This is the benchmark’s longest losing streak in more than three months. Of the Nikkei’s 225 components, 166 fell and 55 rose, while four were unchanged. Energy was the worst-performing sector, tumbling 3.72% following a fall in crude oil prices. Only financials rose 0.3% amid higher global bond yields, and real estate gained 0.37%.
The broader Topix slid 1.2%, also deepening losses in afternoon trading.
Money markets are now certain that the Fed will raise rates by 75 basis points later in the day, which would be the biggest increase since 1984, after data last week showed US consumer price inflation running red hot.
“The market is nervous, and you can feel how hard it is to move in this environment,” said a market participant at a domestic securities company.
Chip-making equipment manufacturer Tokyo Electron was the Nikkei’s biggest drag, shaving off 25 points with its 1.37% drop. Its peer Advantest sank 1.15%, despite gains for chip-related shares on Wall Street overnight.
Department store operator Isetan Mitsukoshi Holdings was the biggest percentage decliner, down 5.20%. Rival Takashimaya sank 4.34%.
Energy company Idemitsu Kosan retreated 3.92%.
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