Japan Nikkei falls on US rate hike action

Japanese share market finished session steep lower on Friday, 04 November 2022, as risk aversion selloff triggered on tracking decline of the Wall Street in previous two sessions, after the fourth straight 75-basis point interest rate hike by the US Fed and the hawkish comments from Fed Chair Jerome Powell that signals more interest rate hikes in the coming months. Japan market closed on Thursday on account of Culture Day holiday.

At closing bell, the 225-issue Nikkei Stock Average index fell 463.65 points, or 1.68%, to 27,199.74. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 25.06 points, or 1.29%, to 1,915.40.

Total 28 of 33 TOPIX sectorial indices declined, with Precision Instruments (down 2.8%), Marine Transportation (down 2.8%), Metal Products (down 2.6%), and Information & Communication (down 2.2%) issues being notable losers, while Air Transportation (up 1.3%) and Nonferrous Metals issues were notable gainer (up 0.4%).

Investors disheartened after remarks from Fed Chair Jerome Powell on Wednesday, following the announcement of another 75-basis-point rate hike, squashed hopes for a pivot in the near term.

Investors are now awating for the US Labor Department's monthly payroll report coming out later in global day for any signs of cooling in the economy.

Among individual shares, Mitsubishi Motors soared 18% after net income soared in the first-half and it revised up its full-year operating profit forecast.

ECONOMIC NEWS: The final au Jibun Bank Japan Services purchasing managers' index (PMI) rose to a seasonally adjusted 53.2 from the prior month's 52.2, growing at the quickest rate since June. The report also showed that the composite PMI, which is calculated by combining the manufacturing and services readings, stood at 51.8 in October, up from the previous month's 51.0 final.

CURRENCY NEWS: The dollar fetched 147.96 yen in Asian trade against 148.25 yen in New York late Thursday.

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