Japan's Nikkei slides 3% as Fed hike bets, soaring oil weigh
EWJ•Nikkei falls on U.S. rate and oil worries
TOKYO, Sept 11 (Reuters) - Japan's Nikkei fell 3% on Friday amid renewed concerns over U.S. rate hikes and a surge in oil prices that fuelled inflation worries.
The benchmark Nikkei 225 gauge .N225 fell 3.11% to 63,243.98 in early trading. The broader Topix .TOPX slipped 1.95% to 3,975.67.
U.S. equities retreated overnight as higher Treasury yields and August producer-price data heightened expectations for a Federal Reserve rate hike. Fed Chair Kevin Warsh has signalled a shift away from forward guidance, keeping investors alert to upcoming U.S. inflation figures. Meanwhile, geopolitical tensions persisted as the U.S.-Iran confrontation continued to disrupt energy markets.
"All three major indices in the U.S. fell in response to rising crude oil prices and higher U.S. long-term interest rates, which is likely to weigh on Japanese equities," said Takuma Ikemoto, market analyst at Tokai Tokyo Intelligence Lab.
"With Fed Chair Warsh signalling a focus on curbing inflation, a wait-and-see stance is likely to strengthen in the Japanese stock market," he added.
Breadth was overwhelmingly negative, with 23 advancers on the Nikkei 225 against 201 decliners and one unchanged.
The biggest losers were Resonac Holdings 4004.T, down 8.12%, followed by Kioxia Holdings 285A.T, down 7.11%, and Sumco 3436.T, down 6.77%.
The index's largest percentage gainers were Inpex 1605.T, up 2.04%, followed by Konami Group 9766.T, up 1.89%, and Bandai Namco Holdings 7832.T, up 1.76%.
