Japan's Nikkei slips on caution before Fed decision; tech stocks slide - Business Recorder

TOKYO: Japan’s Nikkei share average retreated on Monday from a one-week high, as US data showing sticky inflation raised worries that the Federal Reserve may keep interest rates higher for longer.
Tech and other so-called growth shares sagged after US producer price data on Friday suggested inflation could prove more persistent than previously thought, ahead of a consumer price report on Tuesday and the Fed policy decision the following day.
The Nikkei lost 0.29% to 27,821.12 by the midday break, after hitting its highest level since Dec. 2 on Friday.
Uniqlo store owner Fast Retailing shaved 28 index points from the Nikkei with a 0.78% decline, making it the biggest drag.
The stock was followed by chip-making equipment makers Tokyo Electron and Advantest, which lost 1.01% and 0.91%, respectively.
Among Nikkei sectors, only financials and utilities eked out gains.
Financials were buoyed by higher US bond yields. The broader Topix slipped 0.14% to 1,958.91.
“Japanese investors are worried about prolonged US interest rate increases, and you can see that in the names that are leading declines,” Maki Sawada, a strategist at Nomura, said in a call with journalists.
Japanese shares end higher as chip stocks, exporters gain
“But investors really want to see what the FOMC (Federal Open Market Committee) will do, so I don’t expect trading leading up to that to give much indication of market direction.”
Other notable decliners on Monday included online retailer Rakuten Group, which...

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