Nikkei Sinks 2% On U.S. Inflation, Fed Tightening Fears

After unexpectedly strong US inflation in May fanned concerns about the country's economy and possible aggressive Fed tightening, Tokyo markets fell Monday, pushing the Nikkei index down nearly 2%, Mainichi Japan reported.

Photo Insert: The 225-issue Nikkei Stock Average plummeted 666.78 points, or 2.40 percent, to 27,157.51 in the first 15 minutes of trade.

The 225-issue Nikkei Stock Average plummeted 666.78 points, or 2.40 percent, to 27,157.51 in the first 15 minutes of trade. At 1,907.84, the broader Topix index was down 35.25 points, or 1.81 percent.

Every industry category on the top-tier Prime Market lost ground except for electric power and gas issues. Decliners were led by machinery and electric appliance issues.

At 9 a.m., the dollar fetched 134.77-80 yen compared with 134.35-45 yen in New York and 133.59-62 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.0489-0493 and 141.38-45 yen against $1.0504-0514 and 141.27-37 yen in New York and $1.0625-0626 and 141.95-99 yen in Tokyo late Friday afternoon, Kyodo News also reported.

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