Nikkei ends lower on fears U.S. rate hikes will hurt global economy

TOKYO, Sept. 5 (Xinhua) -- Japan's benchmark Nikkei stock index closed lower for a fourth successive day Monday, following Wall Street's weak lead late last week amid ongoing concerns the U.S. Federal Reserve's aggressive rate hikes will impact the global economy.

The 225-issue Nikkei Stock Average lost 31.23 points, or 0.11 percent, from Friday to close the day at 27,619.61.

The broader Topix index, meanwhile, shed 1.38 points, or 0.07 percent, to finish at 1,928.79.

Local dealers said the market mood was dented following Wall Street's poor showing on Friday, owing to solid U.S. jobs data for August supporting the median market consensus the Fed will continue with its aggressive rate hikes to combat inflation.

"The Fed will likely push ahead with a 0.75 point basis rate hike to be announced later this month, with the central bank also signaling its aggressive monetary policy will continue into the future despite the impact it will have on its own and the global economy," a Tokyo-based investment analyst was quoted as saying.

Market strategists also noted that U.S. markets being closed for the Labor Day holiday on Monday added to a risk-off mood, amid a lack of fresh trading cues.

"The market was open today but the number of participants was limited as investors are not motivated to make active bets ahead of U.S. labor day holiday," Chihiro Ota, assistant general manager of investment research and investor services at SMBC Nikko Securities, was quoted as saying.

"There aren't any market-moving events and trading volume is very thin," she added.

By the close of play, land transportation, transportation equipment, and air transportation issues comprised those that declined the most, and falling issues outpaced rising ones by 1,085 to 687 on the Prime Market, while 65 ended the day unchanged.

Nikkei heavyweight Fast Retailing, operator of the Uniqlo clothing chain, weighed on the market, dropping 1.2 percent, despite reporting a rise in sales for August.

Denso, a parts supplier for Toyota, was a notable loser, reversing 2.1 percent, while medical equipment maker Terumo also closed in negative territory, falling 0.2 percent.

Air transportation issues declined on concerns energy prices may rise further, with ANA Holdings dropping 1.0 percent, while rival Japan Airlines fell 1.4 percent.

A comparatively weak yen gave exporters a boost, however, on hopes overseas profits will increase when repatriated, with electric motor maker Nidec adding 1.2 percent, while TDK ended the day 1.3 percent higher.

On the Prime Market on Monday, 811.92 million shares changed hands, rising from Friday's volume of 1,030.61 million shares.

The turnover on the first trading day of the week came to 1,998.55 billion yen (14.22 billion U.S. dollars).