Tokyo: Nikkei ends at 14-month low as tech stocks fall on Fed tightening timeline

[TOKYO] Japan's Nikkei index ended at a 14-month low, dragged down by technology heavyweights, after the US Federal Reserve's chairman signalled plans to steadily tighten policy.

The Nikkei share average lost 3.11 per cent to 26,170, its lowest close since Nov 24, 2020. The index, which fell for a third straight day, marked its biggest daily decline since June 21, 2021.

The broader Topix fell 2.61 per cent to 1,842.44. Both the indexes opened higher.

"The US market was not solid yesterday, that made investors cautious and they bet Wall Street might fall later today," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute.

Overnight, all 3 major US stock indexes gyrated wildly in the final minutes of a session that ended with the Dow joining the S&P in negative territory and the Nasdaq eking out a nominal gain.

In Japan, electric motor maker Nidec fell 6.17 per cent, giving up early gains, after its third-quarter operating profit dipped as rising material prices and a shortage of semiconductors squeezed margins.

Technology startup investor SoftBank Group tanked 9.15 per cent, chip-related Advantest lost 6.97 per cent and game maker Sony Group fell 6.74 per cent.

Bucking the trend, Fanuc gained 1.1 per cent after the robot maker raised its annual operating profit forecast.

Trading firm Marubeni gained 1.38 per cent after announcing the sale of the grains business of its US unit Gavilon to commodities trader Glencore's Viterra arm.

Only 2 out of the 33 industry sub-indexes on the exchange gained, with insurance firms and oil explorers up 0.37 per cent and 0.04 per cent, respectively.

There were 25 advancers on the Nikkei index against 197 decliners. REUTERS