Tokyo shares sank on Monday after US Federal Reserve Chair Jerome Powell pledged to act 'forcefully' against soaring inflation.
File: A pedestrian walks past an electronic quotation board displaying the numbers of the Nikkei 225 Index on the Tokyo Stock Exchange.TOKYO - Tokyo shares sank on Monday after US Federal Reserve Chair Jerome Powell pledged to act"forcefully" against soaring inflation, signalling more rate hikes to come.
The dollar stood at 138.77 yen, rising from 137.38 yen seen Friday in New York after Powell spoke at an annual symposium of global central bankers in Jackson Hole, Wyoming."The Tokyo market was also down across the board on Monday," the brokerage said, noting that chip-related shares in particular faced sell-offs.
His speech erased any hope that the US central bank may slow the speed of its rate hikes or even return to cutting rates to avoid an economic slowdown, analysts said. In Tokyo, Advantest, which makes chip-testing kits, dropped 4.18 percent to 8,010 yen, while Tokyo Electron, which produces tools to build semiconductors, plunged 5.10 percent to 43,530 yen. SoftBank Group lost 3.66 percent to 5,496 yen.
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