Nikkei closes lower as US monetary tightening continues

The Japanese Nikkei index ended lower Friday’s trading in the Tokyo Stock Exchange, as the tightening monetary policies of the US Federal Reserve prompted investors to sell on their return from a national holiday. However, strong gains in Chinese stocks limited losses.

The Nikkei average fell 1.68 percent to 27,199.74 points, its worst daily performance since October 11, after plunging at the start of the session to 27,032.02 points shortly before the Chinese markets opened.

The broader Topix index fell 1.29 percent to 1915.40 points.

Over the course of the week, the Nikkei rose 0.35 percent, while the Topix gained about 0.9 percent.

Stocks on Wall Street extended their decline on Thursday, a day after Federal Reserve Chairman Jerome Powell dashed investor hopes by saying it was “too early” to consider suspending interest rate hikes.

Of the 225 stocks listed on the Nikkei index, 182 fell, 39 rose, and four settled unchanged.

All sub-indices declined, with interest rate-sensitive technology shares leading the losses, as low as 2.23 percent. The performance of the energy sector was the best, dropping 0.34 percent, supported by the rise in oil prices.