TOKYO, Nov 24 (Reuters) - Japan's Nikkei ended lower on
Wednesday, as growth-oriented stocks took a beating amid
investor concerns that the U.S. Federal Reserve might speed up
policy tightening to cope with broadening inflationary risks.
U.S. President Joe Biden on Monday nominated Federal Reserve
Chair Jerome Powell for a second four-year term and appointed
Lael Brainard as vice-chair, leaving investors bracing for a
more aggressive central bank.
"It's not that markets are reacting to these nominations per
se. What's becoming clear is, for Powell, in his second term,
the biggest task is dealing with inflation, rather than
maximising employment," said Norihiro Fujito, chief investment
strategist at Mitsubishi UFJ Morgan Stanley Securities.
Richly valued U.S. tech shares fell in the past two
sessions, denting investors' risk appetite in the Japanese
markets, which were closed on Tuesday for a national holiday.
The Nikkei average dropped 1.58% to 29,302.66, while
the broader Topix lost 1.16% to 2,019.12, led by a 1.85%
fall in Topix Growth index.
Internet firm Z Holdings, which has a price/earning
ratio of more than 60 times, fell 4.6%, while medical platform
operator M3 lost 5%.
Recruit Holdings shed 4.3%, while SoftBank Group
, which has a big exposure to global high-tech shares,
Semiconductor-related shares were also pounded, with
Lasertec down 3.3%, Advantest losing 4.1% and
Screen Holdings shedding 3.1%.
On the other hand, some value stocks gained, with a weaker
yen lifting carmakers while elevated U.S. bond yields boosted
Mitsubishi Motors rose 5.1%, while Nissan Motor
gained 4.4%. Toyota Motor added 0.9%.
Among financials, SMFG rose 2.1%, while Mitsubishi
UFJ gained 0.8%.
Resource-related firms also gained, helped by a rebound in
Trading house Marubeni jumped 1.9% while rival
Mitsui & Co added 1.7%. Sumitomo Metal gained
Elsewhere, Toshiba fell 1.6% following a Reuters
report that its second-largest shareholder objected to the
Japanese conglomerate's plan to split itself into three
(Reporting by Hideyuki Sano; Editing by Rashmi Aich and Sherry