Nikkei 225 Plunges Towards 62k Amid Fed-BoJ Rate Hike Bets

Investors are bracing for potential interest rate hikes from both the Federal Reserve and the Bank of Japan, which could push the Nikkei 225 Index to a bearish target of 62,000. Traders predict that the Fed will hike rates by between 3.75% and 4%, while the BoJ is expected to raise its benchmark rate by 25 basis points.

The move would signal an acceleration of the hiking cycle, with Japan's headline inflation rising to 1.9% in July due to energy price increases.

While the upcoming rate hikes have already been priced in, investors will be closely watching the language and guidance from Fed officials Kevin Warsh and BoJ Governor Kazuo Ueda.