Nikkei 225 falls on rising interest rate expectations

Japan's Nikkei 225 index fell by approximately 1.97% to 65,096.63 points on Monday, driven by rising expectations of interest rate hikes by central banks to combat inflation. The broader Topix index also declined by 0.84% to 4,111.71 points.

Market pressure follows a downturn in Wall Street indices last week, fueled by Federal Reserve remarks emphasizing the fight against inflation. Additionally, investors are pricing in a near-certain interest rate hike from the Bank of Japan at its meeting next month, causing Japanese government bond yields to reach levels not seen in decades.

Major losers included Mitsubishi Materials, Japan Steel Works, and Advantest. Conversely, gains were seen in stocks such as Kansai Electric Power, Tokai Carbon, and Jitec. In other news, Ishibanya shares rose significantly following news that House Foods Group is considering delisting its curry restaurant chain.