TOKYO, Sept. 21 (Xinhua) — Tokyo shares closed decrease Wednesday extending drops on Wall Street, as buyers additionally awaited an extra fee hike anticipated to be introduced after the U.S. Federal Reserve coverage assembly.
The 225-issue Nikkei Stock Average misplaced 375.29 factors, or 1.36 %, from Tuesday to shut the day at 27,313.13, hitting a two-month low.
The broader Topix index, in the meantime, went down 26.47 factors, or 1.36 %, to complete at 1,920.8.
The U.S. dollar briefly topped the 144 yen line after the Bank of Japan (BOJ), the nation’s central financial institution, introduced Wednesday it deliberate to conduct an emergency bond-buying operation.
Dealers right here stated the transfer led to yen promoting by reinforcing the view that the BOJ won’t tweak its monetary-easing coverage in its assembly via Thursday, regardless of the broader rate of interest hole between the United States and Japan weighing on the yen.
The BOJ’s announcement got here earlier than the conclusion of the Fed’s two-day coverage assembly, and a few buyers anticipated the U.S. central financial institution to implement a one-percentage-point rate of interest hike to deliver down hovering inflation within the nation.
Japanese shares on Wednesday had been additionally dragged down by weaker auto points, monitoring an in a single day plunge in shares of the U.S. automaker Ford Motor. Toyota Motor misplaced 2.4 % and Honda Motor was down 1.9 %.
Ford stated Monday its third-quarter earnings will probably be affected by elements scarcity and growing procurement bills as a result of inflation, which “sparked concerns that global automakers like Toyota and Honda may also face similar challenges,” Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., was quoted as saying.
By the shut of play, shares in transportation tools, air transportation, in addition to electrical energy and gasoline led the declines, with declining points outpacing advancing ones by 1,491 to 288 on the Prime Market.
On the Prime Market on Wednesday, 1,068.75 million shares modified arms, increasing from Tuesday’s 1,034.41 million shares.