Nikkei 225 Tumbles on Hawkish Fed Bets and Escalating Middle East Tensions
The Nikkei 225 closed at 66,311.93 on Monday after falling 0.14% from Friday's close as hawkish signals from the Federal Reserve and escalating Middle East tensions dampened investor appetite for risk.
The index plunged as much as 2.37% in early trading before staging a remarkable recovery driven by bargain hunting in semiconductor-related stocks and a weaker yen, which provided support for exporters.
The Topix index showed resilience, gaining 0.23% to close at 4,156.29, extending its winning streak to eight consecutive sessions. This divergence highlights the concentration of selling pressure on large-cap technology names while the broader market demonstrated strength.
Hawkish signals from Federal Reserve Chair Kevin Warsh's Jackson Hole address on Friday continued to reverberate through global markets on Monday, with investors reassessing the likelihood of further US rate hikes.