Japan’s Nikkei closes at a 6-week low, and bank stocks rise

Japan’s Nikkei index ended Monday’s trading at a six-week low, tracing the impact of Wall Street’s decline in the previous session, while bank stocks rose on speculation of an interest rate hike in the country.

The Nikkei fell 1.05 percent to close at 27,237.64 points, its lowest level since November 4, in the third consecutive session of decline. The broader Topix index fell 0.76 percent to 1935.41 points.

US stocks fell for the third consecutive session on Friday, posting a second week of losses, as concerns persist that the US central bank’s effort to curb inflation will push the economy into recession.

However, the banking sector on the Japanese Stock Exchange rose 1.19 percent on Monday, and was the best performer among the sub-indices of the sectors.

Speculation increased that the Japanese central bank might adjust its policy of relying on a very low interest rate after a report that the government may consider reviewing a joint statement with the Bank of Japan on the target inflation rate next year.