Japan Nikkei tumbles on US rate hike woes

Japan stock market finished session deeply in the negative terrain on Monday, 21 June 2021, as risk off selloff triggered across the board on tracking a global selloff after fresh comments from a Federal Reserve official indicated that the US central bank might raise interest rates sooner than expected.

At closing bell, the 225-issue Nikkei Stock Average declined 953.15 points, or 3.29%, to 28,010.93. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 47.11 points, or 2.42%, to 1,899.45.

Trading volume turnover in the 1st section decreased to 1,301 million shares from 1,512 million shares in previous session. Trading value turnover decreased to 2,946.68 billion yen from 3,535.64 billion yen in previous session.

Total 32 sectors of 33 sectors sub-indexes on the Tokyo exchange ended down, with top losers were Rubber Products (down 3.6%), Chemicals (down 3.4%), Insurance (down 3.3%), Warehousing & Harbor Transportation Services (down 3.1%), Wholesale Trade (down 3%), Glass & Ceramics Products (down 3%), Nonferrous Metals (down 2.9%), Securities & Commodities Futures (down 2.8%), and Metal Products (down 2.8%) sectors, while top gainer was Air Transportation (up 0.7%).

Uniqlo operator Fast Retailing Co. and chip-equipment maker Tokyo Electron Ltd. were the biggest drags on the Nikkei 225 Stock Average, which closed 3.3% lower.

Financial stocks dropped, on a deepening slide in longer-term U.S. Treasury yields on the prospect of a less accommodative U.S. monetary policy. Inflation risks may warrant the start of interest rate hikes next year, St. Louis Fed President James Bullard said on Friday, pointing to the possibility of an even earlier liftoff than indicated in the central bank's comments a few days earlier. Among financials, Mitsubishi UFJ Financial Group shares fell 2.7% and Mizuho Financial Group declined 2.3%.

CURRENCY NEWS: The Japanese yen traded at 109.88 per dollar, stronger than levels above 110.5 against the greenback seen last week.

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