Tokyo ends in sharp decline, depressed by the Fed

The flagship Nikkei index fell 2.66% to 27,878.96 points and the broader Topix index lost 1.79% to 1,944.10 points.

The Tokyo Stock Exchange suffered heavy losses on Monday, weighed down like the Western markets last Friday by the firmness in the face of American inflation displayed by Fed Chairman Jerome Powell at the Jackson Hole conference (United States).

The flagship Nikkei index fell 2.66% to 27,878.96 points and the broader Topix index lost 1.79% to 1,944.10 points.

On the Hong Kong Stock Exchange, the Hang Seng index was down 0.67% shortly before 0600 GMT.

Powell dashed market hopes of a Fed rate cut next year on Friday: Returning to price stability “will take time” and lead to “a long period of lower growth,” he said. he notably warned.

Despite the slight deceleration in inflation in the United States in July, Mr. Powell also reiterated that the Fed was ready for “another exceptionally strong rate hike” at its next meeting on September 21, after already two tightenings. consecutive 75 basis points each time.

On the side of values

PANASONIC: according to the Wall Street Journal citing sources familiar with the matter, Panasonic (-1.5% to 1,110 yen) plans to build an additional 4 billion dollar electric battery factory in the United States, more precisely in Oklahoma ( center).

Asked by AFP, a spokesperson for Panasonic did not confirm this information. The group has already announced in July a similar factory project in the neighboring state of Kansas, and it has been operating since 2017 with Tesla the first “Gigafactory” of the American manufacturer of electric vehicles in Nevada (western United States).

HONDA: the second Japanese automaker Honda (+0.41% to 3,669 yen) will build an electric battery factory in the United States with South Korea’s LG Energy Solution, the Japanese economic newspaper Nikkei reported on Monday. The construction site should start next year with the objective of commissioning in 2025, according to this media. Asked by AFP, Honda declined to comment.

On the side of oil and currencies

The oil market climbed: around 06:10 GMT the barrel of American WTI rose by 0.58% to 93.60 dollars and the barrel of Brent from the North Sea took 0.26% to 101.25 dollars.

On the foreign exchange market, the yen weakened sharply against the dollar, at the rate of one dollar for 138.81 yen around 06:20 GMT against 137.64 yen on Friday at 21:00 GMT.

The Japanese currency also fell against the euro which was worth 137.82 yen against 137.17 yen at the end of last week.

In addition, the euro traded for 0.9925 dollars against 0.9965 dollars on Friday at 9:00 p.m. GMT.

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