21 Jun

Japanese stocks fall amid Fed rate hike rumours

Japan's stocks continued their fall amid concerns that the US Federal Reserve's predicted interest rate hike would reduce the amount of spending in the Asian country.

"Some investors are bearish in the US economic outlook and the current conditions only encourage them to sell more exporter stocks," Hideo Arimura, of Tokyo's Dai-Ichi Kangyo Asset Management, told Bloomberg.

Some of Japan's largest exporters felt the decline the most, with electronics manufacturer Sony seeing a 70 yen fall (1.5 per cent), to 4,770.

Toyota stocks fell by 0.4 per cent - a total of 20 yen - to 5,760, while Hitachi saw a 0.6 per cent decline.

Stocks have been falling and will continue to fall as analysts speculate that in a bid to try and stem inflation, the US monetary policy committee will up its interest rates.

Some commentators are concerned that the continual rate hike will send the US economy into recession, Bloomberg reports.