TOKYO, Japan — Tokyo's key Nikkei index tumbled just over three percent after the open on Monday, tracking losses on Wall Street as investors digested Federal Reserve messaging on more restrictive monetary policy.
The benchmark Nikkei 225 index was down 3.01 percent or 870.79 points to 28,093.29 just over 30 minutes after the opening bell, while the broader Topix index was down 2.44 percent or 47.51 points to 1,899.05.
"Tokyo markets are in a storm following drops in US shares," Okasan Online Securities said in a note.
On Wall Street, "reaction to last week's hawkish FOMC meeting continued," said Rodrigo Catril, senior strategist at National Australia Bank, in a commentary.
Expectations of a Fed rate hike sent US Treasury yields higher and pushing down stocks and the dollar.
Tokyo and US investors were reacting to comments by St Louis Fed President Jim Bullard in which he revealed himself as one of the seven FOMC members pencilling a rate hike by the end of 2022.
"Bullard is not a voting member this year and has a history of being very dovish and very hawkish, still, given market sensitivity, Bullard's interview contributed to" volatility, Catril said.
The dollar fetched 110.19 yen in early Asian trade, against 110.20 yen in New York and 110.07 yen in Tokyo on Friday.
Among major shares in Tokyo, Toyota was down 1.93 percent at 9,643 yen and Fast Retailing, Uniqlo casual wear operator and market heavyweight, dropped 2.83 percent to 80.140 yen.
On Wall Street Friday, the Dow ended down 1.6 percent at 33,290.08, while the broad-based S&P closed down 1.3 percent and the tech-rich Nasdaq finished down 0.9 percent.