Nikkei 225 slips as oil-driven inflation concerns lift rate-hike expectations
Japan’s Nikkei 225 fell 0.6% to below 66,000, extending prior losses. Higher oil prices fueled inflation fears, while rising Treasury yields and bets on near-term Fed hikes, plus BoJ rate-hike expectations for September, pressured stocks.
The Nikkei 225 Index fell 0.6% to below 66,000 on Tuesday, extending losses from the previous session as higher oil prices fuelled inflation worries and reinforced expectations for near-term interest rate increases. Japanese shares also tracked a weak Wall Street lead overnight, with Treasury yields rising on bets that the Federal Reserve will raise rates this month. In Japan, investors are also pricing in the chance that the Bank of Japan could lift rates in September amid persistent yen weakness and import-led inflation.
Technology and AI-related stocks led declines, with Fujikura down -3%, Advantest -2.9%, Tokyo Electron -4.6%, Taiyo Yuden -1.5% and Murata Manufacturing -1.4%. Financial stocks also fell, while consumer shares edged higher.