Breaking News
0

Nikkei drops as hawkish Fed and trade concerns curb risk appetite

Stock MarketsJun 14, 2018 02:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Man looks at a mobile phone next to an electronic board showing Japan's Nikkei average outside a brokerage in Tokyo

TOKYO (Reuters) - Japan's Nikkei share average dropped on Thursday after the U.S. Federal Reserve forecast a slightly faster pace of rate hikes this year, while concerns about a U.S.-China trade war also hurt sentiment.

The Nikkei (N225) ended down 0.99 percent to 22,738.61.

As expected, the Fed raised its benchmark overnight lending rate a quarter of a percentage point to a range of 1.75 percent to 2 percent, on the back of strong U.S. economic growth. Policymakers also projected a slightly faster pace of rate increases in the coming months.

Worries about global trade also dented investors' risk sentiment. U.S. President Donald Trump is expected to meet top trade advisers to decide whether to activate threatened tariffs on billions of dollars in Chinese goods.

"The Fed's hawkish tone does not help the market, which is more worried about a global trade war, which would have a negative impact for a much longer term," said Takuya Takahashi, a strategist at Daiwa Securities.

Shares of exporters such as automakers and electronics stocks came under pressure.

Nissan Motor Co (T:7201) fell 1.3 percent, Hitachi (T:6501) shed 2.05 percent and Panasonic Corp (T:6752) dropped 1.89 percent.

Mining stocks underperformed after oil prices eased, with Inpex Corp (T:1605) losing 2.23 percent.

Shippers bucked the broader weakness and advanced after the Baltic Dry Index (BADI), or freight charges, rose overnight. Mitsui OSK Lines (T:9104) gained 1.25 percent and Nippon Yusen (T:9101) added 1.09 percent.

The broader Topix (TOPX) dropped 0.92 percent to 1,783.89.

Nikkei drops as hawkish Fed and trade concerns curb risk appetite
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email