Tokyo stocks closed lower on Tuesday amid concerns over the impact of U.S. Federal Reserve’s possible prolonged interest rate hikes.
Japan’s benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, ended lower for the fourth consecutive trading day by losing 521.94 points, or 1.64 percent, from Monday to close at 31,237.94.
The broader Topix index, meanwhile, finished 38.97 points, or 1.68 percent, lower at 2,275.47.
Weak performances were seen in the Tokyo market tracking overnight Wall Street losses after the long-term rate temporarily rose to a 16-year high of 4.70 percent in the U.S. bond market on Monday amid expectations of a prolonged period of monetary tightening.
While the Japanese stock market continues to adjust, the Japanese yen continues to weaken against the U.S. dollar in the foreign exchange market. Market watchers here noted that long-term overseas investors, who had been buying during the April-May rally, have been adopting profit-taking strategies on value stocks.
On the top-tier Prime market, decliners were led by mining, oil and coal product and nonferrous metal issues.
Issues that fell outpaced those that rose by 1,663 to 159, while 13 ended the day unchanged.