TOKYO (Kyodo) — Tokyo stocks fell on Tuesday with the Nikkei index dropping to its lowest level in a month, as concerns over the adverse impact of prolonged U.S. interest rate hikes on the world’s largest economy spurred selling of technology and auto issues.
The 225-issue Nikkei Stock Average ended down 363.57 points, or 1.11 percent, from Monday at 32,315.05, its lowest result since Aug. 29. The broader Topix index finished 13.56 points, or 0.57 percent, lower at 2,371.94.
On the top-tier Prime Market, decliners were led by pharmaceutical, machinery and electric appliance issues.
The U.S. dollar briefly rose above the 149 yen line to a fresh 11-month high of 149.18 yen in Tokyo, on expectations that rate differentials between Japan and the United States may continue to widen as the Bank of Japan is expected to keep intact its easy monetary policy for a while.
At 5 p.m., the dollar fetched 148.86-88 yen compared with 148.83-93 yen in New York and 148.43-45 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.0585-0586 and 157.57-61 yen against $1.0586-0596 and 157.52-62 yen in New York, and $1.0638-0639 and 157.91-95 yen in Tokyo late Monday afternoon.
The yield on the bellwether 10-year Japanese government bond ended 0.015 percentage point higher on Tuesday at 0.740, tracking an overnight rise in long-term U.S. yields.
Stocks were sold throughout the day, with investors remaining cautious over further monetary tightening by the U.S. Federal Reserve. High-tech shares notably lost ground amid concerns over the U.S. economy’s prospects, as the 10-year Treasury yield reached a 16-year high overnight in New York.
Export-oriented auto issues also met selling despite a weaker yen against the dollar, which usually helps to lift such shares as it boosts exporters’ overseas profits when repatriated.
“If U.S. interest rates remain at an elevated level for a long time, it would have negative effects on the U.S. economy,” prompting selling in auto and semiconductor issues, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
Semiconductor manufacturing equipment maker Tokyo Electron dropped 775 yen, or 3.7 percent, to 20,165 yen, while chip-testing equipment maker Advantest slumped 370 yen, or 2.2 percent, to 16,130 yen.
Among auto issues, Toyota Motor slipped 45 yen, or 1.6 percent, to 2,716.5 yen, and Nissan Motor lost 13.6 yen, or 2.0 percent, to 678.6 yen.
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