Worries Over High Us Rates Trigger Drop In Tokyo Stocks
The Nikkei Average fell sharply on Monday to finish below the 28,000 mark for the first time in nearly 3 weeks. The drop followed sell-offs in New York on Friday.
Investors were reacting to comments from US Federal Reserve Chair Jerome Powell, who said the central bank will continue to raise interest rates to curb inflation. That raised worries that tighter policy could cool down the economy.
The Nikkei 225 ended the day at 27,878, down 762 points, or nearly 2.7 percent, from Friday's close.
Traders unloaded shares almost across the board.
The Nikkei Average recovered the 29,000 mark earlier this month for the first time since January. Concerns over a US slowdown eased somewhat. Some investors were also upbeat on the Japanese economy. But Monday saw many of the gains erased.