TOKYO: Tokyo’s key Nikkei index closed lower on Monday as global investors worried the Federal Reserve could further lift interest rates after the latest US inflation data came in higher than expected.
The benchmark Nikkei 225 index slipped 0.11 percent, or 29.52 points, to 27,423.96, though the broader Topix index added 0.22 percent, or 4.38 points, to 1,992.78.
“Tokyo shares fell following the trend on the US market where high-tech shares were sold after higher-than-expected inflation data,” Iwai Cosmo Securities said in a note.
They added that the Tokyo market briefly moved higher partly thanks to the yen’s decline to the 136 level against the dollar, which supported exporters.
The US currency stood at 136.30 yen, against 136.46 yen Friday in New York.
The Fed’s preferred gauge of inflation, the personal consumption expenditures (PCE) index, “depicted a US economy running too hot at the start of the year, increasing the urgency for the Fed to do more tightening over coming months”, said Rodrigo Catril of National Australia Bank.
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Stephen Innes of SPI Asset Management echoed that view.
“It could be difficult for the market to find much comfort this week unless the sentiment data surprises to the downside,” he said.
In Tokyo trading, market heavyweight SoftBank Group plunged 2.25 percent to 5,469 yen.
Chip-testing equipment maker Advantest lost 1.55 percent to 10,760 yen while Tokyo Electron, which makes tools to build semiconductors, dropped 1.88 percent to 46,870 yen.
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