Nikkei Slides Nearly 2% on Hawkish Fed Comments

Japan's Nikkei share gauge took a hit on Monday, falling nearly 2% as investors reacted to hawkish comments from Federal Reserve Chair Kevin Warsh.

The benchmark Nikkei 225 dropped to 65,096.63 in early trading, while the broader Topix slipped 0.84% to 4,111.71.

The decline was largely attributed to rising expectations for central bank rate hikes aimed at taming inflation, following Warsh's remarks that reiterated the Fed's focus on fighting inflation and increasing prospects for an interest rate hike.