TOKYO, June 21 Reuters Japanese shares posted their biggest drop in four months on Monday, tracking Wall Streets selloff last week, triggered by fresh comments from a Federal Reserve official that the U.S. central bank might raise interest rates sooner than expected.
Heavy selling in Japan was seen across almost sectors, with all the Tokyo Stock Exchanges 33 industry subindexes, except airlines, trading lower.
The Nikkei share average lost 3.29 in its biggest percentage fall since Feb. 26, to close at 28,010.93, after touching its lowest in a month. The broader Topix slipped 2.42 to 1,899.45, also its biggest decline in four months.
Following a surprise projections on earlier than expected rate hikes by U.S. central bank on Wednesday, St. Louis Fed President James Bullard further fuelled the selloff on Friday by saying the shift toward faster policy tightening was a natural response to economic growth.
The three main Wall Street indexes finished sharply lower on Friday.
The Japanese market is reacting too much. First of all, rate hikes are signs of an economic recovery, Shuji Hosoi, senior strategist at Daiwa Securities, said.
Index heavyweights slumped, with Uniqlo owner Fast Retailing losing 4.35.
Tech startup investor SoftBank Group lost 3.51 after the Wall Street Journal reported that Chief Executive Masayoshi Son dissolved his longstanding personal lending with Credit Suisse.
Chiprelated shares also dragged the Nikkei lower, with Tokyo Electron losing 4.02,…