Monday, September 5, 2022

Nikkei ends lower on fears U.S. rate hikes will hurt global economy.

People's Daily: Nikkei ends lower on fears U.S. rate hikes will hurt global economy.

09:20, September 06, 2022

TOKYO, Sept. 5 (Xinhua) -- Japan's benchmark Nikkei stock index closed lower for a fourth successive day Monday, following Wall Street's weak lead late last week amid ongoing concerns the U.S. Federal Reserve's aggressive rate hikes will impact the global economy.

The 225-issue Nikkei Stock Average lost 31.23 points, or 0.11 percent, from Friday to close the day at 27,619.61.

The broader Topix index, meanwhile, shed 1.38 points, or 0.07 percent, to finish at 1,928.79.

Local dealers said the market mood was dented following Wall Street's poor showing on Friday, owing to solid U.S. jobs data for August supporting the median market consensus the Fed will continue with its aggressive rate hikes to combat inflation.

"The Fed will likely push ahead with a 0.75 point basis rate hike to be announced later this month, with the central bank also signaling its aggressive monetary policy will continue into the future despite the impact it will have on its own and the global economy," a Tokyo-based investment analyst was quoted as saying.

Market strategists also noted that U.S. markets being closed for the Labor Day holiday on Monday added to a risk-off mood, amid a lack of fresh trading cues.

We'll see how U.S. markets react on Tuesday's Opening Bell.

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