|Published : 16 Mar 2017, 12:12:16|
Japanese stocks decline after Fed raise interesting rate
Japanese stocks declined on Thursday, hurt by the dollar's fall against the yen as the US Federal Reserve signalled fewer future rate hikes than many expected.
The Nikkei shed 0.1 per cent to 19,557.35 in midmorning trade.
Fast Retailing, the operator of Uniqlo clothing chain, tumbled 1.9 per cent and contributed a hefty negative 27 points to the benchmark index.
Exporters were dented on a stronger yen, with Toyota Motor Corp falling 0.7 per cent, Honda Motor Co dropping 1.0 per cent and Panasonic Corp shedding 0.5 per cent.
The dollar took a hit after the Fed ended its two-day policy meeting on Wednesday by increasing interest rates.
The dollar, which went as high as 115.195 yen earlier this week, last stood at 113.36.
Banking and insurance stocks underperformed, with their sector indexes slipping 0.9 per cent and 1.9 per cent, respectively, after US Treasury yields fell sharply in reaction to the Fed's stance.
Mitsubishi UFJ Financial Group shed 1.0 per cent, Sumitomo Mitsui Financial Group dropped 0.6 per cent, Dai-ichi Life Holdings stumbled 3.5 per cent, Sompo Holdings declined 1.6 per cent and T&D Holdings 3.0 per cent.
The broader Topix declined 0.2 per cent to 1,568.15 and the JPX-Nikkei Index 400 shed 0.2 per cent to 14,048.02, according to Reuters.