Nikkei falls after BOJ minutes

Japanese stocks faced fresh pressure on Monday as chip stocks tracked Wall Street’s overnight decline and amid more details from the Bank of Japan pointing to further tightening of monetary policy.

The Nikkei fell 0.74% to close at 34,831.15, having fallen 2.5% during the session before rising 0.8%.

After falling 12.4% on Monday and rising on Tuesday, the index has retreated about 20% from its July high above 42,000. The broader Topix index fell 1.11% to 2,461.7.

Earlier today, details from the Bank of Japan revealed a tilt towards further tightening of monetary policy as the bank released the minutes of its July meeting.