Nikkei falls for a third day amid fears of US inflation and Covid-19 in China

Japan’s Nikkei fell on Tuesday for the third consecutive day amid concerns about growth linked to the tightening of US monetary policy and the imposition of strict restrictions to combat the spread of COVID-19 in China.

The Nikkei closed down 1.32 percent at 26,629.86 points, after falling 2.19 percent earlier in the session, its lowest level since May 19.

The broader Topix index fell 1.19 percent to 1,878.45 points.

The Chinese capital, Beijing, is forcing millions of residents to take a test to curb the spread of Covid-19 infection linked to a 24-hour bar, and the Chinese vice premier said there is a need to tighten prevention measures and curb the spread of the disease.

Meanwhile, investors are preparing to raise the interest rate by 150 basis points during two meetings of the Federal Open Market Committee in the United States, one of which ends on Wednesday and the other to be held next month.

The technology sector was among the worst-performing sectors on the Nikkei, which fell 1.95 percent, while the healthcare index fell 2.18 percent, and the real estate index was the most declining, down 2.97 percent.

Even financial stocks gave up the gains recorded earlier in the session, and the sector index ended transactions down 0.14 percent.

Chip maker Tokyo Electron fell 2.84 percent, with the Nikkei falling the most.

And SoftBank Investment Group shares fell 2.56 percent.

Travel-related stocks were also hit. ANA Holdings shares fell 3.61 percent, while Japan Airlines (Japan Airlines) shares fell 2.56 percent.