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Tokyo's Nikkei drops nearly 4 per cent after Trump Fed comment

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[Tokyo] Tokyo's benchmark index closed down nearly four per cent on Thursday, as US President Donald Trump said the Federal Reserve had "gone crazy" with plans for higher interest rates.

The Nikkei 225 index plunged 3.89 per cent, or 915.18 points, to end at 22,590.86, while the broader Topix index shed 3.52 per cent, or 62.00 points, to 1,701.86.

In a phone interview with Fox News, Mr Trump said, "The Fed is going wild and I mean I don't know what their problem is but they're raising interest rates and it's ridiculous."

"The Fed is going loco and there's no reason for them to do it and I'm not happy about it," he added.

US shares plunged on Wednesday as worries about surging US interest rates and the impact of trade disputes prompted a broad-based sell-off that wiped more than three per cent from major indices.

AFP

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