Tokyo stocks retreated on Tuesday morning as a risk averse mood was pervasive as investors keenly eyed the results of Wednesday’s US Federal Reserve policy meeting.
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Rakuten Securities chief strategist Masayuki Kubota said he expects the Fed to increase rates gradually to avoid shocking the global financial market.
The 225-issue Nikkei average tumbled 317.52 points, or 1.68 percent, to 18,565.90, the lowest finish since October 22.
The TOPIX index of all first-section issues dipped 25.33 points, or 1.66 perdent, to 1,502.55, after falling 21.63 points the previous day.
“Stocks are expected to rebound globally, as financial markets will be free from concerns that United States interest rates will rise rapidly”, he said.
Energy explorer Inpex was down 1.05 percent to 1,135.5 yen.
Toshiba, which was fined a record $60 million by Japan’s market watchdog earlier this month over a profit-padding scandal, said no such plan has been confirmed.
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On currency markets, the dollar edged up to 121.10 yen from 120.98 yen Monday in NY.
