Tokyo stocks closed lower on Wednesday, with the benchmark Nikkei hitting a two-month low, weighed down by concerns over the impact of prolonged elevated U.S. interest rates.
Japan’s benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, ended down 509.40 points, or 1.32 percent, from Tuesday at 37,961.80, its lowest closing since Feb. 14.
The broader Topix index, meanwhile, finished 33.96 points, or 1.26 percent, lower at 2,663.15.
Traders pointed out the market fell to its lowest close in two months after the yield on the benchmark 10-year Japanese government bond rose to a five-month high of 0.885 percent, tracking an overnight advance in U.S. Treasury yields.
Stocks extended their losses after the head of the Federal Reserve warned that interest rates would likely have to stay elevated for some time to combat sticky inflation, analysts said
