Tokyo falls nearly 3% at the open dragged down by Fed comments

Tokyo falls nearly 3% at the open dragged down by Fed comments

The Tokyo Stock Exchange fell about 3% at the start of the session on Monday, after statements by the president of the Federal Reserve (Fed), Jerome Powell, increased concern about the US economy.

Around 10:00 local time (1:00 GMT), the benchmark Nikkei index fell 2.91% or 834.61 points, and stood at 27,806.54 integers, lowering the psychological barrier of 28,000 points for the first time in three weeks.

The Topix, which brings together the firms in the first section, those with the largest capitalization in the Japanese stock market, fell 42.91 points, 2.17%, and stood at 1,936.68 units.

Investors on the Tokyo stock exchange responded with concern to Powell’s remarks, who said that the central bank of the world’s largest economy must continue to raise interest rates and keep them at a higher level until inflation is under control.

These statements dragged Wall Street last Friday, which closed in red and with the Dow Jones Industrials, its main indicator, falling 3.03%, and thus ending its second consecutive week in negative.

Among the companies that registered notable losses at that time were the technology giant Softbank, which fell 3.38%, while the Japanese vehicle manufacturer Toyota did so by 1.44% and Fast Retailing, owner of the chain of department stores. Uniqlo clothing, 2.96% was left.

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