Nikkei index records biggest decline in 4 weeks

Japan’s Nikkei index posted its biggest decline in nearly four weeks on Wednesday, tracking Wall Street as hawkish comments from US Federal Reserve officials raised the prospect of a further interest rate hike and fueled fears of slowing economic growth.

The Nikkei lost 1.58 percent to close at 27,350.30 points, its biggest daily drop since March 11. The broader Topix index fell 1.34% to 1,922.91 points.

Wall Street’s main indexes fell overnight, dragged down by losses in technology and other growth stocks after Fed Governor Lyle Brainard said she expects rapid reductions in the central bank’s balance sheet along with increases in key interest rates.

The share of Tokyo Electron chip-making equipment the most pressure on the Nikkei, as it fell 3.63 percent, followed by SoftBank Technology Investment Group, which fell 2.81 percent. Air conditioning maker Daikin Industries lost 3.52 percent.

The refining sector was the only one to rise among the 33 industry sub-indices on the Tokyo Stock Exchange, advancing 1.35 percent.

Cosmo Energy rose 13.44 percent after a fund backed by investor Yoshiaki Murakami acquired a 5.81 percent stake in a crude oil importer and refiner.