Tokyo stocks close lower on interest rate concerns – Markets

TOKYO: Shares in Tokyo closed lower on Wednesday as renewed concerns over plans for a U.S. rate hike weighed on the market ahead of a meeting of central bankers this week.

The benchmark Nikkei 225 ended down 0.49%, or 139.28 points, at 28,313.47 while the broader Topix index fell 0.22%, or 4.26 points, at 1,967.18.

The dollar hit 136.66 yen, barely changed from 136.77 in New York on Tuesday night.

Japanese stocks started in positive territory after a four-day losing streak, but the surge was short-lived as all eyes were on the upcoming central bankers’ symposium in Jackson Hole, Wyoming.

Investors are eagerly awaiting a speech from US Federal Reserve Chairman Jerome Powell at Friday’s meeting.

He is expected to say the Fed is not yet ready to end the steep rate hikes needed to stifle soaring inflation, despite some signs of progress.

“Ongoing concerns about plans to hike US rates weighed on the market” in Tokyo, said Hiromi Kanamaru, senior strategist at Daiwa Securities.

Meanwhile, the latest U.S. new home sales data showed a sharp drop in July to their lowest rate since the start of 2016, as the housing market continues to feel the impact of rising building costs. loan.

Olympus climbed 2.69% to 3,088 yen after a report said Bain Capital was the favorite to buy its scientific optics unit for around 400 billion yen ($2.9 billion).

Tokyo stocks close lower on renewed inflation fears

Toyota was down 0.36% at 2,100 yen after a report said it backed down in a fight over California car emission rules. Rival Honda rose 0.71% to 3,677 yen and Nissan rose 0.13% to 528 yen.

Sumitomo Mitsui Financial Group rose 0.96% to 4,191 yen after a report said the banking group plans to launch an online lending business in the United States. Rival Mitsubishi UFJ Financial gained 0.69% to 728.1 yen.

Stephen V. Lee