TOKYO, June 21 Reuters Japanese shares slumped on Monday, tracking Wall Streets sharp decline over the weekend, after Federal Reserve official James Bullard surprised markets by signalling that the U.S. central bank might raise interest rates sooner than expected.
Heavy selling was seen across almost all sectors, with the Tokyo Stock Exchanges 33 industry subindexes trading lower, while just one stock climbed in the benchmark Nikkei.
The Nikkei share average fell below 28,000 for the first time since May 20 after losing 3.54 to 27,938.16 by 0205 GMT, while the broader Topix slipped 2.69 to 1,894.23.
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.
The three main Wall Street indexes finished sharply lower on Friday, after investors were spooked by hawkish interest rate comments by Bullard.
But Japan needs to find its own consistent reason for a market rebound as Japanese companies are already speeding up vaccine rollouts for their employees. A steady vaccine rollout could be a major reason for an economic recovery.
Index heavyweights fell sharply, with Uniqlo owner Fast Retailing losing 3.75 to its lowest since last November.
Tech startup investor SoftBank Group fell 3.7 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,…