Japan's Nikkei slumps as Fed hike bets, soaring oil weigh

Business Recorder reported that Japan's Nikkei 225 closed Friday 1.93 per cent lower at 64,011.34, leaving the index down 0.4 per cent for the week. Earlier in the session the gauge had slid as much as 3.16 per cent. The broader Topix fell 0.65 per cent to finish at 4,028.30.

Traders focused on renewed worries about further US interest rate increases and a jump in oil prices, which stoked inflation concerns. Overnight, American stocks declined after Treasury yields rose and August producer price figures lifted bets on a Federal Reserve rate increase. Fed Chair Kevin Warsh has moved away from relying on forward guidance, leaving investors watchful ahead of inflation data, while the US-Iran standoff kept energy markets unsettled.

Losses were concentrated in technology and artificial intelligence related stocks, with decliners outnumbering advancers 128 to 95. Resonac Holdings was the steepest loser at 10.68 per cent, ahead of Kioxia Holdings and Toppan Holdings. LY topped the gainers with a 3.44 per cent rise. Takuma Ikemoto of Tokai Tokyo Intelligence Lab expects investors to adopt a cautious approach as Warsh emphasises curbing inflation.