Japan’s share market finished the session lower on Wednesday, 06 April 2022, in line with global markets after hawkish comments from a Fed policymaker increased prospects of aggressive rate hikes by the U. S. Federal Reserve. Meanwhile, concerns about mounting economic sanctions on Russia and the spreading COVID-19 outbreaks and lockdowns in mainland China also undercut market sentiment.
At the closing bell, the 225-issue Nikkei Stock Average declined 437.68 points, or 1.58%, to 27,350.30. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 26.21 points, or 1.34%, to 1,922.91.
The selloff emerged in the Tokyo market on tracking a decline in Wall Street overnight on renewed concerns about the outlook for monetary policy following comments from Federal Reserve Governor Lael Brainard.
At a conference on Tuesday, Fed Governor Lael Brainard said she expects methodical interest rate increases and rapid reductions to the Fed’s nearly $9 trillion balance sheet to bring U. S. monetary policy to a “more neutral position” later this year, with further tightening to follow as needed.
Kansas City Fed President Esther George, a voting member of the Federal Open Market Committee, also in remarks on Tuesday supported a rapid run-off of the Fed balance sheet, and said as well that “50 basis-points is going to be an option that we’ll have to consider.”
Leading the slender upside on a down day was Dai-ichi Life, up 2.3%, followed by railway Keio, up 2.1%, and oil refiner Idemitsu Kosan), up 1.7%. On the downside were shippers Kawasaki Kisen Kaisha at 6.1%, and Mitsui OSK off 5.3%.
CURRENCY NEWS: The U. S. dollar index, which tracks the greenback against a basket of its peers, was at 99.621 following a recent jump from below 99. The Japanese yen traded at 123.85 per dollar, weaker as compared with levels below 123.3 seen against the greenback yesterday.