Japan's Nikkei tumbles as tech stocks hammered on U.S. rate hike worries
EWJ•Japan's Nikkei fell 3.5% in early trading, while the broader Topix dropped 1.9%, after hot U.S. inflation figures fueled fears of higher interest rates. Advantest fell 7.3%, Tokyo Electron 5.8% and SoftBank Group 7.9%.
1. Japanese shares fall
Japan's Nikkei share average slumped in early trading on Thursday, with the tech-heavy index down 3.5% as of 0021 GMT. The broader Topix fell 1.9%.
2. Tech stocks lead losses
AI-linked stocks led declines. Chip equipment makers Advantest and Tokyo Electron dropped 7.3% and 5.8%, respectively, while AI-focused startup investor SoftBank Group fell 7.9%. Of the Nikkei's 225 components, 151 fell, 73 rose and one was unchanged.
3. Rate concerns weigh
A hotter-than-expected U.S. CPI reading stoked bets that the Federal Reserve would raise rates earlier and keep them elevated longer. The U.S. Nasdaq Composite fell 1.9% on Wednesday.
