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Tokyo stocks closed lower on Friday as moves by central banks outside Japan to hike interest rates fuelled recession fears.
The benchmark Nikkei 225 index was down 1.77 per cent, or 468.20 points, to end at 25,963.00, while the broader Topix index slipped 1.71 per cent, or 31.91 points, to 1,835.90.
The US Federal Reserve’s decision to raise its benchmark borrowing rate was followed by rate increase announcements by central banks in Britain and Switzerland on Thursday.
These moves “disheartened investors, prompting sell-offs to widen in the Tokyo market” and leaving them “worried about recessions”, Okasan Online Securities said. Bucking the global tightening trend, the Bank of Japan said Friday it will hold rates at minus 0.1 per cent and continue buying unlimited government bonds to maintain a low cap on long-term yields.