TOKYO, Sept. 22 (Xinhua) — Tokyo shares closed decrease Thursday after the Japanese central financial institution introduced to keep up its easing financial coverage regardless of the Federal Reserve’s determination to lift its key coverage price.
The 225-issue Nikkei Stock Average misplaced 159.30 factors, or 0.58 p.c, from Wednesday to shut the day at 27,153.83.
The broader Topix index, in the meantime, edged down 4.68 factors, or 0.24 p.c, to complete at 1,916.12.
The U.S. dollar hit a 24-year excessive by briefly topping the 145-yen line after the Bank of Japan (BOJ) introduced to keep up short-term rates of interest at minus 0.1 p.c on the finish of a two-day coverage assembly.
BOJ’s determination got here in sharp distinction with the U.S. central financial institution’s aggressive price hikes. The Federal Reserve on Wednesday introduced to lift rates of interest by 75 foundation factors for a 3rd straight time this 12 months and signaled extra aggressive price hikes forward in a bid to rein in inflation.
After the market’s shut, BOJ governor Haruhiko Kuroda rejected the thought of elevating rates of interest within the close to future at a press convention, noting that the nation’s financial restoration from the COVID-19 pandemic is just midway regardless of hovering inflation.
Dealers right here mentioned that the U.S. price hike marketing campaign may tip the nation’s financial system right into a recession, amid issues a couple of world financial slowdown linked to price hikes by different central banks.
A potential slowdown within the world financial system will “naturally weigh on Japanese companies as central banks in the United States and Europe continue to raise interest rates,” mentioned Norihiro Fujito, senior funding strategist at Mitsubishi UFJ Morgan Stanley Securities Co.
By the shut of play, shares in marine transportation, insurance coverage, and repair led the declines, with declining points outpacing advancing ones by 1,105 to 626 on the Prime Market.
Shipping companies had been decrease amid issues a couple of slowdown in demand. Shares of Kawasaki Kisen dropped 2.92 p.c whereas Nippon Yusen ended down 1.23 p.c.
On the Prime Market on Thursday, 1,144.75 million shares modified palms, increasing from Wednesday’s 1,068.75 million shares.