Japanese Shares Drop on Hawkish Fed Bets

2026-08-31 00:48 By Jam Kaimo Samonte 1 min. read

The Nikkei 225 Index dropped 1.4% to below 65,500 while the broader Topix Index fell 0.9% to 4,110 on Monday, giving back last week’s gains as hawkish remarks from Federal Reserve Chair Kevin Warsh revived expectations for a US rate hike in September.

In his Jackson Hole address on Friday, Warsh warned that inflation is not slowing significantly and reiterated the Fed’s commitment to returning inflation to its 2% goal, while noting that financial conditions are not currently restrictive.

Sentiment was also pressured by a jump in oil prices after the US military targeted Iranian rocket launchers preparing to deploy mines into the Strait of Hormuz.

Domestically, data showed Japan’s industrial output unexpectedly increased in July, while retail sales growth exceeded forecasts.

Technology stocks led the decline, with Advantest (-6%), Terra Drone (-15%), SoftBank Group (-3.3%), Tokyo Electron (-3%) and Ibiden Co (-3.6%) posting sharp losses.



News Stream
Asian Stocks Drop on Hawkish Fed Bets
Asian equity markets declined on Monday as hawkish remarks from Federal Reserve Chair Kevin Warsh revived expectations for a US rate hike in September. In his Jackson Hole address on Friday, Warsh warned that inflation isn’t meaningfully slowing and reaffirmed policymakers’ commitment to returning inflation to their 2% target. Sentiment was also weighed down by a jump in oil prices after the US military targeted Iranian rocket launchers preparing to deploy mines into the Strait of Hormuz. Tech-heavy equity benchmarks in Japan and South Korea led the declines, while shares in China and Hong Kong also moved lower.
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Japanese Shares Drop on Hawkish Fed Bets
The Nikkei 225 Index dropped 1.4% to below 65,500 while the broader Topix Index fell 0.9% to 4,110 on Monday, giving back last week’s gains as hawkish remarks from Federal Reserve Chair Kevin Warsh revived expectations for a US rate hike in September. In his Jackson Hole address on Friday, Warsh warned that inflation is not slowing significantly and reiterated the Fed’s commitment to returning inflation to its 2% goal, while noting that financial conditions are not currently restrictive. Sentiment was also pressured by a jump in oil prices after the US military targeted Iranian rocket launchers preparing to deploy mines into the Strait of Hormuz. Domestically, data showed Japan’s industrial output unexpectedly increased in July, while retail sales growth exceeded forecasts. Technology stocks led the decline, with Advantest (-6%), Terra Drone (-15%), SoftBank Group (-3.3%), Tokyo Electron (-3%) and Ibiden Co (-3.6%) posting sharp losses.
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