Nikkei 225 Tumbles Amid Rising Rate Hike Expectations

The Nikkei 225 index opened its Tuesday session at 408.43, below Monday's close, putting it back under levels held for most of the past two weeks.

The immediate pressure point is the Bank of Japan, which is reportedly days away from a rate decision and expected to hike rates to 1.25%.

A tighter policy stance raises the cost of borrowing for domestic borrowers and strengthens the yen, posing a headache for export-heavy companies in the index.