Japan's Nikkei tumbles as tech stocks hammered on US rate hike worries
TOKYO: Japan's Nikkei share average slumped in early trading on Thursday, with technology stocks hit hard after hot US inflation figures sparked fears of higher interest rates.
The tech-heavy Nikkei dropped 3.5 per cent as of 0021 GMT, while the broader Topix fell 1.9 per cent.
Overnight, a hotter-than-expected US consumer price index reading stoked bets that the Federal Reserve will need to raise rates earlier and keep them elevated longer, taking a toll on the highly leveraged tech sector. The US Nasdaq Composite slumped 1.9 per cent on Wednesday.
In Japan, artificial intelligence (AI)-linked stocks led losses, with chip equipment makers Advantest and Tokyo Electron drooping 7.3 per cent and 5.8 per cent, respectively. AI-focused startup investor SoftBank Group tumbled 7.9 per cent.
Of the Nikkei's 225 components, 151 fell versus 73 that rose, with one flat.
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