Nikkei Tumbles on Hawkish Fed Comments and Rate Hike Fears

Japan's benchmark Nikkei share gauge fell nearly 2% on Monday, following hawkish comments from the Federal Reserve.

The Nikkei 225 plummeted 1.97% to 65,096.63 in early trading, while the broader Topix slipped 0.84% to 4,111.71.

The decline comes after Federal Reserve Chair Kevin Warsh reiterated the central bank's focus on fighting inflation, increasing prospects for an interest rate hike.

Markets have priced in a near certainty that the Bank of Japan will raise rates at its meeting next month, causing yields on Japanese government bonds to rise to fresh multi-decade highs.