In line with the Dow’s losses, Japan’s Nikkei share average also fell more than 1% on Monday as risk appetite was dampened by caution ahead of central bank meetings in the US and Japan.
By the lunch break, the Nikkei down 1.23% to 30,609.48, while the Topix as a whole fell 1.04% to 2,231.23.
“The Dow Jones’s losses over the weekend pulled down the Nikkei. Additionally, investors held off on purchasing equities while they awaited policy announcements from central banks in Japan and the United States, according to Shoichi Arisawa, general manager of IwaiCosmo Securities’ investment research division.
Investors also want to wait for the release of more company outlooks because several businesses saw significant selloffs following the disclosure of unsatisfactory outlooks.”
Friday saw investors digesting a busy week of mixed results and economic data that appeared to support the “higher for longer” interest rate scenario. The Dow Jones Industrial Average fell 1.12% and the S&P 500 lost 0.48%.
As the 10-year bond yield approaches the bank’s policy cap of 1%, the Bank of Japan faced mounting pressure to retreat further from its contentious bond yield control. On Monday, the bank began a two-day policy meeting.
According to analysts in a Reuters poll, the U.S. Federal Reserve will maintain its benchmark interest rate on hold on November 1 and may hold off on raising it longer than initially anticipated as the central bank’s higher-for-longer message gathers support.
Hino Motors’ individual share price fell 18.69% to its daily limit after the carmaker revealed an annual net loss, altering the original prediction of a profit.
Omron also hit its daily ceiling, plunging 15.83% as the manufacturer of medical equipment lowered its predicted yearly earnings.