Roundup: Tokyo stocks close lower on Wall Street's slip, concerns over Fed rate hike-Xinhua

Roundup: Tokyo stocks close lower on Wall Street's slip, concerns over Fed rate hike

Source: Xinhua| 2022-04-27 18:13:43|Editor: huaxia

TOKYO, April 27 (Xinhua) -- Tokyo stocks closed lower Wednesday dragged down by U.S. shares moving lower overnight amid concerns over rising energy costs and the U.S. Federal Reserve's more aggressive monetary policy.

The 225-issue Nikkei Stock Average dropped 313.48 points, or 1.17 percent, from Tuesday to close the day at 26,386.63.

The broader Topix index, meanwhile, lost 17.75 points, or 0.94 percent, to finish at 1,860.76.

Local brokers said that the market here inherited a downbeat mood from Wall Street's plunge overnight, particularly the Nasdaq hitting its lowest closing level since December 2020, as investors worried about the Fed's response to slowing growth and inflation.

Some strategists said that investors were concerned about economic issues in Europe along with the prospect of the Fed upping the pace of its monetary policy tightening.

Market participants were worried about the slowdown in certain economies, "in addition to the possibility that the U.S. Federal Reserve will accelerate the pace of its monetary policy tightening," Yutaka Miura, senior technical analyst at Mizuho Securities Co., was quoted as saying.

Many investors are betting the Fed will announce a larger rate hike than first expected during its two-day policy meeting starting May 3 to combat rising inflation, dealers here added.

Conversely, the Bank of Japan began its two-day policy meeting on Wednesday but will likely leave its ultra-loose monetary policy unchanged, in a move that could contribute to a widening monetary policy gulf between Japan and the United States.

By the close of play, securities house, pulp and paper, and rubber product issues comprised those that declined the most, while issues that fell outpaced those that rose by 1,198 to 600 on the Prime Market, while 40 ended the day unchanged.

Tokyo Electron dragged the broader market lower, losing 1.5 percent, while industrial robotics maker Fanuc tumbled 5.7 percent, after its earnings report came in below market expectations.

Among high-tech issues driven lower by the Nasdaq's overnight slide, Lasertec dropped 3.6 percent, while Taiyo Yuden lost 2.1 percent.

Asahi Group Holdings was a notable winner, however, jumping 4.3 percent, after saying it would raise the price of some of its alcoholic beverages, with expectations growing that this would turn into increased revenue for the firm.

By the close of play on the Prime Market, 1,655.61 million shares changed hands, rising from Tuesday's volume of 1,034.50 million shares, the turnover on the third trading day of the week came to 3,999.48 billion yen (31.28 billion U.S. dollars).

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