Nikkei Share Average Plummets 2% on Rate Hike Expectations

Japan's Nikkei share average plummeted nearly 2% on Monday due to rising expectations of interest rate hikes by major central banks.

The benchmark Nikkei 225 index fell 1.97% to 65,096.63 in early trading, while the broader Topix declined 0.84% to 4,111.71.

Investor sentiment was pressured by losses on Wall Street last week after Federal Reserve Chair Kevin Warsh reiterated the U.S. central bank's focus on bringing inflation under control.

Markets are now pricing in a near certainty that the Bank of Japan will raise interest rates at its meeting next month, causing Japanese government bond yields to climb to fresh multi-decade highs.