Nikkei falls more than 2% at the beginning on uneasiness over Fed monetary tightening

Tokyo, May 9 (Latest) .- The main index of the Tokyo Stock Exchange, the Nikkei, opened this Monday’s session with losses of more than 2%, amid concern that the US central bank will further tighten its monetary policy to try to control inflation.

After the first hour of trading, the Nikkei, which brings together the 225 most representative titles in the market, fell by 2.21% or 596.72 points, and stood at 26,406.84 integers.

The broader selective Topix, which includes the firms with the largest capitalization, those in the main section, lost 1.57% or 29.99 points, and stood at 1,885.92 units.

The Tokyo floor opened lower, discouraged by the losses reaped at the end of last week on Wall Street, where the benchmark Dow Jones Industrials recorded its worst day since 2020 after investors uneasily digested the announcement of the rise in Federal Reserve (Fed) rates.

The rise, the highest in that country in more than two decades, seeks to curb runaway inflation in the territory, which has generated concern about a possible further tightening of the entity’s monetary policy, which has already pointed out on several occasions that it does not rule out further tweaks in the near future.

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The iron and steel, non-ferrous metals and real estate sectors reaped the biggest losses at the start.

Despite Tokyo’s biggest trader at the start, semiconductor equipment maker Lasertec, posting gains of close to 1%, most of the day’s top 10 traded companies were in negative territory.

Steelmaker JFE Holdings slumped more than 10% and mill Nippon Steel lost more than 6%.

The Softbank telecommunications group fell more than 3% and the Fast Retailing textile group, owner of the Uniqlo clothing store chain, was close to 4%.

The automotive manufacturer left 0.6% and the technological multinational Sony, more than 2%.

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