TOKYO: Tokyo stocks have fallen 0.51 per cent following a broad sell-off on Wall Street after recent rallies.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange lost 100.86 points to close at 19,596.91, while the broader Topix index of all first-section shares slipped 0.49 per cent, or 7.74 points, to 1,585.83.
Selling pressure in Tokyo came after European and US shares were driven down on Thursday by a grim Rolls-Royce profit warning and another fall in crude prices that hit oil companies.
Also weighing on the Japanese market was the yen’s strength against the dollar at 122.61, maintaining ground gained overnight in New York where it fetched Y122.60.
The US currency has remained under pressure as Federal Reserve officials emphasised the need for a cautious approach to monetary policy, even as they reiterated their preference for a rate rise this year.
The appreciating yen, which makes Japanese products more expensive overseas, was seen pulling down exporters.
More broadly, investors continued to focus on the possibility of the Federal Reserve raising interest rates next month.
Several Fed officials, including chair Janet Yellen, spoke publicly on Thursday, reiterating that December was possible for a rate rise – as long as it is supported by economic data.
The Fed “wants to see the impact on the job markets and business growth after a rate rise. It won’t pick up the pace drastically,” Nobuyuki Fujimoto, a senior market analyst at SBI Securities Co, told Bloomberg News.
Tokyo investors also awaited earnings from the nation’s three main banks on Friday due after the market close.
