Nikkei halts a 4-session decline

The Japanese Nikkei index halted a four-session losing streak on Thursday, boosted by a rally in US stocks last night after the Federal Reserve raised interest rates by 75 basis points, as expected.

But the bleak outlook for the global economy amid continued risks related to the sharp tightening of monetary policies affected investors, as the stock index fell significantly from its high levels in early trading.

The Nikkei closed up 0.4 percent at 26,431.20 points, rebounding from its lowest closing level since May 12, which was hit on Wednesday.

Traders said that profit-taking started as soon as it approached the level of moral support at 27000 points.

The broader Topix index rose 0.64 percent to 1,867.81 points.

The US Standard & Poor’s index rose 1.45 percent last night, but it is expected to give up some of its gains on Thursday.

Federal Reserve Chairman Jerome Powell said a 75 basis point rate hike “looked like the best thing to do during this meeting” but added that such a hike, the largest since 1994, was unlikely to become “common”.

He pointed out that the economic slowdown resulting from the tightening of monetary policy may lead to an increase in unemployment rates.

Among the 225 stocks on the Nikkei index, 167 rose and 51 fell, while six stocks did not witness any change.

Shares of Fast Retailing, owner of the clothing brand Uniqlo, rose 1.44 percent, Toyota Motor jumped 2.88 percent and Sony Group rose 1.53 percent.