Nikkei closes lower as US monetary tightening continues

The Japanese Nikkei index ended trading lower today, Friday, in the Tokyo Stock Exchange, as the tightening monetary policies of the US Federal Reserve prompted investors to sell on their return from a national holiday, although strong gains in Chinese stocks limited losses.

According to “Reuters”, the Nikkei index fell 1.68 percent to 27,199.74 points, in its worst daily performance since October 11, after it plunged at the beginning of the session to 27,032.02 points, shortly before the opening of Chinese markets.

The broader Topix index fell 1.29% to 1915.40 points

Over the course of the week, the Nikkei rose 0.35 percent, while Topix gained about 0.9 percent.

Stocks on Wall Street extended their slide on Thursday, a day after Federal Reserve Chairman Jerome Powell dashed investor hopes by saying it was “too early” to consider suspending interest rate hikes.

Among the 225 stocks listed on the Nikkei index, 182 declined, 39 rose, and four settled unchanged.

All sub-indices declined, with interest-rate-sensitive technology stocks leading the losses, as low as 2.23 percent. The performance of the energy sector was the best, as it fell 0.34 percent, supported by the rise in oil prices.