Tokyo stocks close lower on fresh rate hike worries

Tokyo stocks closed lower Monday on renewed fears of interest rate hikes following hawkish comments from US Federal Reserve officials.

The benchmark Nikkei 225 index fell 0.47 percent, or 135.83 points, to 28,794.50, while the broader Topix index lost 0.10 percent, or 1.93 points, to end at 1,992.59. The dollar stood at 137.22 yen, against 136.93 yen seen Friday in New York.

With an annual meeting of central bankers in Jackson Hole, Wyoming, coming up this week, investors are likely to refrain from “aggressively pursuing” gains, Okasan Online Securities said.

Rekindled concerns over rate hikes added to the cautious mood, after Fed speakers made comments that investors took to mean a slowdown in rate hikes may not be forthcoming after all.

Last week, St. Louis Federal Reserve President James Bullard reiterated his calls for another 0.75 percentage point hike, while San Francisco Fed chief Mary Daly said that raising rates by 50.