Nikkei trailed Wall Street lower and closed at a 10-month low

The Nikkei index of Japanese stocks closed at its lowest level in nearly ten months in the first trading sessions in 2023, tracking the impact of Wall Street’s decline last night, while sentiment was also affected by the rise of the yen against the dollar.

The Nikkei index fell 1.45 percent to 25,716.86 points on Wednesday, its lowest closing level since March 15.

The broader Topix index lost 1.25 percent to close at 1868.15 points.

The main US stock indices closed lower overnight, as investors worried about the path of the Federal Reserve’s monetary policy and as they awaited the minutes of the December meeting.

The yen rose to its highest level against the dollar in seven months on Tuesday amid expectations that the Bank of Japan will reverse its ultra-loose monetary policy.

All but three of the market’s sub-indices declined, as the banking sector index jumped 2.67 percent to top the gainers among 33 sectors, while the insurance sector rose 0.75 percent and the brokerage sector rose 0.06 percent.

Among the 225 stocks listed on the Nikkei index, 30 rose, 193 fell, while two remained unchanged.