Japan shares extend losses as rate uncertainty, geopolitical woes curb appetite
EWJ•Japanese shares fell for a second consecutive session on Thursday, with the Nikkei 225 down 1.42% to 69,042.11 and the Topix off 1.51% to 4,091.46. Investors weighed the U.S. rate outlook, higher yields and geopolitical tensions.
1. Indexes fall again
The Nikkei 225 and Topix each lost more than 1% as investors paused after recent rallies. Resona Holdings strategist Hiroki Takei said profit-taking had picked up and selling pressure appeared to be continuing.
2. Rate and geopolitical concerns
Investors remained wary of the U.S. monetary policy outlook after Federal Reserve minutes showed most participants signalling another rate hike by year-end. Rising energy prices and fiscal concerns weighed on sentiment toward French and Italian debt markets, while attacks on shipping in the Gulf and the Strait of Hormuz raised concerns over Middle East oil supplies and pushed crude prices higher. Chipmaker Rohm fell 5.19%, SoftBank Group lost 4.28% and Tokyo Electron dropped 2.48%.
