TOKYO: Tokyo stocks closed lower Wednesday as renewed worries over rate hike plans in the United States weighed on the market ahead of a meeting of central bankers this week.
The benchmark Nikkei 225 index ended down 0.49 percent, or 139.28 points, at 28,313.47 while the broader Topix index fell 0.22 percent, or 4.26 points, to 1,967.18.
The dollar fetched 136.66 yen, barely changed from 136.77 in New York late Tuesday.
Japanese stocks started in positive territory after a four-day losing streak, but the upward drive was short-lived, with all eyes on the upcoming symposium of central bankers in Jackson Hole, Wyoming.
Investors are waiting with bated breath for US Federal Reserve Chair Jerome Powell’s speech at the meeting on Friday.
He is expected to say the Fed is not yet ready to end the steep rate hikes needed to quell soaring inflation, despite some signs of progress.
“Lingering worries over US rate hike plans weighed on the market” in Tokyo, said Hiromi Kanamaru, senior strategist at Daiwa Securities.
Meanwhile, the latest US data on new home sales showed a sharp decline in July to their lowest rate since early 2016, as the real estate market continues to feel the impact of higher borrowing costs.
Olympus soared 2.69 percent to 3,088 yen after a report said Bain Capital was the frontrunner to buy its scientific optics unit for about 400 billion yen ($2.9 billion).
Tokyo stocks close lower on fresh inflation fears
Toyota was down 0.36 percent at 2,100 yen after a report said it had backed down in a fight against California car emission rules. Its rival Honda was up 0.71 percent at 3,677 yen, and Nissan was up 0.13 percent at 528 yen.
Sumitomo Mitsui Financial Group was up 0.96 percent at 4,191 yen after a report said the banking group plans to start an online lending venture in the United States. Its rival Mitsubishi UFJ Financial was up 0.69 percent at 728.1 yen.
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