Japan's Nikkei slumps as Fed hike bets, soaring oil weigh
TOKYO: Japan’s Nikkei slumped on Friday amid renewed concerns over US rate hikes and a surge in oil prices that fuelled inflation worries. The benchmark Nikkei 225 gauge fell 1.93% to close at 64,011.34, giving it a 0.4% decline on the week. The gauge earlier sank as much as 3.16%. The broader Topix slipped 0.65% to 4,028.30. US equities retreated overnight as higher Treasury yields and August…
Japan's Nikkei index experienced a sharp decline on Friday, with concerns mounting over potential US rate hikes and rising oil prices. The benchmark Nikkei 225 index fell 1.93%, closing at 64,011.34, marking a 0.4% decrease for the week. At one point, the index plummeted by 3.16%. The broader Topix index followed suit, slipping 0.65% to 4,028.30.
US equities faced a downward trend overnight due to rising Treasury yields and August producer-price data, which fueled expectations of a Federal Reserve rate increase. Federal Reserve Chair Kevin Warsh hinted at a shift away from forward guidance, prompting investors to keep a close eye on upcoming inflation data. Geopolitical tensions, particularly the ongoing US-Iran conflict, continued to impact energy markets.
Market analyst Takuma Ikemoto from Tokai Tokyo Intelligence Lab noted that with Warsh signaling a focus on curbing inflation, a cautious approach is likely to prevail in the Japanese stock market. Technology and AI-related shares led the Nikkei lower, with 95 stocks advancing against 128 decliners and two remaining unchanged. The most significant losers included Resonac Holdings, which dropped 10.68%, Kioxia Holdings, falling 6.99%, and Toppan Holdings, down 6.95%.
On the positive side, LY rose 3.44%, followed by Kawasaki Kisen Kaisha, which gained 2.94%, and Dai-Ichi Life Holdings, up 2.73%.
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