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 producer-price data heightened expectations for a Federal Reserve rate hike. Fed Chair Kevin Warsh has signalled a shift away from forward guidance, keeping investors alert to upcoming inflation figures. Meanwhile, geopolitical tensions persisted as the US-Iran confrontation continued to disrupt energy markets. “With Fed Chair Warsh signalling a focus on curbing inflation, a wait-and-see stance is likely to strengthen in the Japanese stock market, ” Takuma Ikemoto, market analyst at Tokai Tokyo Intelligence Lab, said in a note. Technology and AI-related shares led the Nikkei lower. There were 95 advancers on the gauge against 128 decliners and two unchanged. The largest losers were Resonac Holdings, down 10. 68%, followed by Kioxia Holdings, 6. 99% lower, and Toppan Holdings, which lost 6. 95%. The largest gainers were LY, up 3. 44%, followed by Kawasaki Kisen Kaisha, 2. 94% higher, and Dai-Ichi Life Holdings, which gained 2. 73%.

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