Newsfrom Japan
Tokyo, Dec. 1 (Jiji Press)–Japanese stocks and government bonds were heavily sold on Monday, amid growing speculation about an early interest rate hike by the Bank of Japan.
On the Tokyo Stock Exchange, the benchmark Nikkei 225 average slid 950.63 points, or 1.89 pct, from Friday to close at 49,303.28. The broader TOPIX index fell 40.11 points, or 1.19 pct, to 3,338.33.
In Tokyo interdealer trading, the key 10-year government bond yield rose as high as 1.875 pct, the highest level since June 17, 2008. Bond yields and prices move inversely.
Meanwhile, the yen strengthened to 155.37-37 per dollar at 5 p.m., against 156.28-31 at the same time Friday.
In a speech on Monday morning, BOJ Governor Kazuo Ueda said that the central bank would make an “appropriate decision” on whether to raise interest rates at its Dec. 18-19 policy-setting meeting. He told a press conference later in the day that a delay in hiking rates could spur inflation and cause confusion.
[Copyright The Jiji Press, Ltd.]
