Japan Nikkei falls ahead of Powell testimony

Japan share market finished session lower on Wednesday, 22 June 2022, after erasing early gains, as investors opted to book yesterday's profit on caution ahead of congressional testimony by Federal Reserve Chair Jerome Powell later in the day.

At closing bell, the 225-issue Nikkei Stock Average declined by 96.76 points, or 0.37%, to 26,149.55. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 3.55 points, or 0.19%, to 1,852.65.

U.S. Federal Reserve chair Jerome Powell is due to start his testimony to Congress on Wednesday with investors looking for further clues about whether another 75-basis-point rate hike is on the cards in July.

Investors are continuing to assess how worried they need to be about central banks potentially pushing the world economy into recession as they attempt to curb red hot inflation with interest rate increases.

Most other global central banks are in a similar situation, apart from the Bank of Japan, which last week pledged to maintain its policy of ultra-low interest rates.

SBI Holdings rose 2.8% on reports that Sumitomo Mitsui Financial Group is in final talks to buy a 10% stake in the financial conglomerate.

CURRENCY NEWS: The Japanese yen hit a new 24-year low of 136.71 per dollar in Asian trading after minutes from the Bank of Japan's April policy meeting showed many board members stressed the need to maintain the central bank's massive stimulus program to support a still-fragile economy.

Powered by Capital Market - Live News