Stocks, Tokyo accentuates losses on Fed moves – Latest Hour

(ANSA) – TOKYO, 21 JUN – The Tokyo Stock Exchange has lost more than 3% less than two hours after opening, with investors looking at the signals coming from the Federal Reserve on inflation and the prospects for a lesser monetary policy accommodating.

Comments from committee member and St Louis Fed chairman Jim Bullard confirm the board’s orientation towards rising interest rates by the end of 2022, analysts say, increasing volatility on major equity markets. A dynamic that is confirmed by the increase in yields on the bond market and the contraction of the indices on Wall Street, with the largest weekly drop in the Dow Jones since October, and the strengthening of the yen against the dollar, penalizing primarily the Japanese auto sector, which the more it depends on export sustainability.

Before the mid-day break, the Nikkei benchmark index dropped 3.16% to 28,479.43, leaving over 900 points on the ground. The yen appreciates against the dollar at 110.15.