TOKYO: Tokyo stocks fell 0.65 percent on Thursday morning after a surprisingly dovish forecast by the Federal Reserve for US economic growth and interest rates sent the yen surging against the dollar.
The Nikkei 225 index at the Tokyo STOCK EXCHANGE slipped 126.10 points to 19,418.38 by the break, while the Topix index of all first-section shares shed 0.70 percent, or 11.11 points, to 1,571.35.
After a two-day policy meeting, the Fed on Wednesday issued a statement that removed a pledge to remain “patient” on raising interest rates, signalling a possible mid-year rate increase.
But bank chair Janet Yellen stressed growth prospects were more muted than three months ago, despite strong increases in jobs creation. She noted consumer spending has slipped, inflation has declined, wages are flat, and the stronger dollar has hurt US exports.
