Global Market: Japan's Nikkei falls 3% as oil surge, US rate hike fears weigh
Japan’s Nikkei fell over 3% in early trade as surging oil prices and rising US Treasury yields revived inflation and rate-hike concerns. Japanese equities came under broad pressure, with 201 Nikkei 225 stocks declining against just 23 gainers.
By Anupam Nagar, ETMarkets.com |
ETMarkets.com
Japan stocks slide as oil and rate fears intensify.
Japan's Nikkei share average fell more than 3% on Friday, hit by renewed concerns over a potential U.S. interest-rate hike and a surge in oil prices that intensified inflation worries.
The benchmark Nikkei 225 fell 3.11% to 63,243.98 in early trading, while the broader Topix declined 1.95% to 3,975.67.
Read more: Global Market Today: Asian stocks, bonds fall on oil, inflation concern
U.S. equities fell overnight as higher Treasury yields and August producer-price data strengthened expectations that the Federal Reserve could raise interest rates. According to Reuters, investors were also closely watching signals from Fed Chair Kevin Warsh, who has indicated a shift away from forward guidance, keeping markets focused on upcoming U.S. inflation data.
Oil prices have surged amid the continuing U.S.-Iran confrontation, adding to concerns that higher energy costs could fuel inflation and complicate the outlook for monetary policy.
Read more: US stocks today: US stocks end lower as rising oil, Treasury yields lift Fed hike bets
Reuters cited Takuma Ikemoto, market analyst at Tokai Tokyo Intelligence Lab, as saying that rising crude prices and higher U.S. long-term interest rates were likely to weigh on Japanese equities.
The analyst also said Japanese investors were likely to adopt a more cautious, wait-and-see approach as the Fed's focus on controlling inflation remained in focus.
Market breadth was sharply negative, with 201 stocks declining on the Nikkei 225, compared with just 23 advancers, while one stock was unchanged.
Resonac Holdings was the biggest decliner, falling 8.12%, followed by Kioxia Holdings, which dropped 7.11%, and Sumco, which declined 6.77%.
In contrast, Inpex gained 2.04% to lead the index's percentage gainers. Konami Group rose 1.89%, while Bandai Namco Holdings advanced 1.76%.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)
The benchmark Nikkei 225 fell 3.11% to 63,243.98 in early trading, while the broader Topix declined 1.95% to 3,975.67.
Read more: Global Market Today: Asian stocks, bonds fall on oil, inflation concern
U.S. equities fell overnight as higher Treasury yields and August producer-price data strengthened expectations that the Federal Reserve could raise interest rates. According to Reuters, investors were also closely watching signals from Fed Chair Kevin Warsh, who has indicated a shift away from forward guidance, keeping markets focused on upcoming U.S. inflation data.
Oil prices have surged amid the continuing U.S.-Iran confrontation, adding to concerns that higher energy costs could fuel inflation and complicate the outlook for monetary policy.
Read more: US stocks today: US stocks end lower as rising oil, Treasury yields lift Fed hike bets
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Reuters cited Takuma Ikemoto, market analyst at Tokai Tokyo Intelligence Lab, as saying that rising crude prices and higher U.S. long-term interest rates were likely to weigh on Japanese equities.
The analyst also said Japanese investors were likely to adopt a more cautious, wait-and-see approach as the Fed's focus on controlling inflation remained in focus.
Market breadth was sharply negative, with 201 stocks declining on the Nikkei 225, compared with just 23 advancers, while one stock was unchanged.
Resonac Holdings was the biggest decliner, falling 8.12%, followed by Kioxia Holdings, which dropped 7.11%, and Sumco, which declined 6.77%.
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In contrast, Inpex gained 2.04% to lead the index's percentage gainers. Konami Group rose 1.89%, while Bandai Namco Holdings advanced 1.76%.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)
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