TOKYO, Sept 26 — Tokyo stocks closed lower today with investors disheartened by global selloffs linked to growing fears over an economic slowdown.
The benchmark Nikkei 225 index plunged 2.66 per cent, or 722.28 points, to end at 26,431.55, while the broader Topix index lost 2.71 per cent, or 51.84 points, to 1,864.28.
The dollar fetched ¥143.89, against ¥143.31 on Friday in New York.
Recession fears spread on Friday after central banks ramped up interest rates to combat decades-high inflation, causing stock markets to tumble and the pound to crash against the dollar.
The Federal Reserve’s decision Wednesday to again lift borrowing costs by 75 basis points was followed by a warning that more big rises were in the pipeline and that rates would likely come down only in 2024.
There were similar moves by central banks in other countries, including Britain, Sweden, Norway, Switzerland, the Philippines and Indonesia — all pointing to a dark outlook for markets.
“Last week’s monetary policy meetings around the world highlighted the prospect that rate hikes will continue, which is having a negative impact on Japanese stocks, too,” Makoto Sengoku, senior equity market analyst at Tokai Tokyo Securities, told AFP.
“Stock prices also keep going down, leaving more and more investors feeling uncertain,” he added.
Among major shares in Tokyo, SoftBank Group nosedived 5.18 per cent to ¥5,066, Sony Group plummeted 3.85 per cent to ¥9,682 and Toyota plunged 3.20 per cent to ¥1,963.
Uniqlo operator Fast Retailing ended down 0.83 per cent at ¥80,600. — AFP
