Japanese Shares Fall on Fed Jitters

The Nikkei 225 Index fell 0.7% to around 27,970 while the broader Topix Index dropped 0.8% to1,988 on Tuesday, sliding for the third straight session and tracking Wall Street lower, weighed down by hawkish remarks from US Federal Reserve officials who signaled that interest rates will continue to rise well into next year.

Investors also continued to track developments in the unrest over China’s strict Covid restrictions, with heavy police presence seen on city streets.

Technology stocks led the slump, with heavy losses from SoftBank Group (-2.1%), Keyence (-1.6%) and Ferrotec Holdings (-2.9%).

Other index heavyweights also declined such as Toyota Motor (-1.2%), Sony Group (-0.8%) and Mitsubishi Corp (-1.1%).

Elsewhere, Eisai sank 9.3% after a report of a second death potentially linked to its experimental drug for Alzheimer’s disease developed with Biogen.