TOKYO: Tokyo stocks fell 0.94 percent on Thursday, on fears over China’s economic prospects and after the yen strengthened against the dollar as speculation the US Federal Reserve would hike rates receded.
The Nikkei 225 index at the Tokyo Stock Exchange shed 189.11 points to close at 20,033.52, while the Topix index of all first-section shares slipped 1.49 percent, or 24.60 points, to 1,623.88.
“The uncertain outlook surrounding China and the nearing US rate hike is weighing on the market,” said Soichiro Monji, chief strategist at Daiwa SB Investments.
“With many investors still away on summer break and with volumes low, small selling is compounding the drop.”
US policy makers said they need to see further improvement in the labour market and inflation before raising interest rates for the first time in nearly nine years, minutes from the Federal Reserve’s July meeting showed Wednesday.
“The Fed is lacking decisive reasons to raise rates,” Mitsushige Akino, executive officer at Ichiyoshi Asset Management, told Bloomberg News.
“Concerns about the global economy are a burden, and cheaper oil increases concerns about global growth.”
US stocks fell Wednesday, with petroleum-linked equities hit especially hard in the face of growing fears about the slowing Chinese economy.
