Tokyo stocks plummeted Wednesday, with the Nikkei suffering its largest drop since September 2022, hit by concerns over the downgrading of US debt by a major credit rating agency and moves to lock in gains after the benchmark climbed to a one-month high.
The 225-issue Nikkei Stock Average ended down 768.89 points, or 2.30%, from Tuesday at 32,707.69, after losing over 800 points at one point. The broader Topix index finished 35.60 points, or 1.52%, lower at 2,301.76.
Decliners were led by insurance, securities house, and electric power and gas shares, Japan’s Kyodo News Agency reported.
The US dollar retreated to the upper 142 yen range in Tokyo after the currency reached the mid-143 yen level in New York overnight, a one-month high, following sharp rises in US long-term interest rates amid a more positive outlook for the US economy.
Fitch rating agency downgraded the US credit rating from the top level of AAA to a notch lower at AA+ on Tuesday following concerns over the state of the country’s finances and its debt burden. (QNA)
Source: Qatar News Agency
