Nikkei slides on US tech selloff, oil-driven rate fears
TOKYO: Japan's Nikkei share average tumbled on Monday as a selloff in US technology stocks and rising oil prices fuelled concerns about inflation and higher interest rates.
Tokyo: Japan's Nikkei share average plummeted on Monday following a tech stock sell-off in the United States and a surge in oil prices, sparking worries about inflation and potential interest rate hikes. The key Nikkei 225 index declined by 2.05% to reach 63,984.45 in early trading, while the broader Topix index dropped by 1.22% to 4,016.34.
The decline in Japanese stocks came after a sluggish day on Wall Street, driven by losses in AI and chip-related companies. A staggering 3% increase in oil prices further exacerbated inflation fears, a major catalyst for market turbulence as central banks prepare for additional tightening measures. Bank of Japan Governor Kazuo Ueda stated on Monday that underlying inflation is "quite close" to the central bank's 2% target, underscoring the significance of keeping inflation in check.
Although chip-related stocks pressed the index down, value and defensive stocks are expected to bolster the market, according to Yuta Okamoto, a market analyst at Tokai Tokyo Intelligence Laboratory. In the Nikkei 225, there were 78 gainers compared to 147 losers, with no stocks remaining unchanged. The biggest decliners included Taiyo Yuden, which fell by 7.42%, followed by Sumitomo Electric Industries, down 5.96%, and Sumco, which plummeted 5.88%.
The top gainers in the index were Toho, up 3.64%, Baycurrent, rising 2.80%, and Aeon, which climbed 2.14%.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
