Japan's Nikkei falls for fourth session amid U.S. rate-hike worries

Japan's Nikkei falls for fourth session amid U.S. rate-hike worries

TOKYO, Aug 23 (Reuters) - Japan's Nikkei fell for a fourth straight session on Tuesday, tracking Wall Street's overnight losses ahead of a U.S. Federal Reserve gathering later this week, while airlines and retailers jumped on news about possible easing of border rules on COVID.

The Nikkei .N225 closed 1.19% lower at 28,452.75, while the broader Topix .TOPX slipped 1.06% to 1,971.44.

Wall Street closed sharply lower on Monday as investors fretted that the Jackson Hole gathering would reinforce a strong commitment by the Fed to stamp out inflation.

"The Japanese market is weak today but relative to an almost 2% fall in the Dow, the Nikkei's decline is smaller. That's because investors have started buying stocks at a dent," said Jun Morita, general manager of the research department at Chibagin Asset Management.

Meanwhile, a PMI survey showed Japan's factory activity growth slowed to a 19-month low in August as output and new order declines deepened, amid growing pressure from persistent rises in raw material and energy costs and weakening global demand.

Technology stocks fell, tracking losses in their U.S. peers after Treasury yields rose.

Start-up investor SoftBank Group 9984.T fell 2.42% and medial platform services provider M3 2413.T slipped 2.93%. Chip-making equipment maker Tokyo Electron 8035.T fell 0.79%.

Hino Motors 7205.T , Toyota Motor's 7203.T truck and bus unit, tanked 6.36% and was the top loser on the Nikkei after its engine-related misconduct widened to small trucks. Toyota slipped 2.16%.

Bucking the trend, leisure-related shares gained after reports Japan may remove requirements for pre-departure COVID-19 tests for travellers and raise daily caps on foreign visitors.

The airline sector .IAIRL.T was the top gainer among the Tokyo Stock Exchange's 33 industry subindexes, rising 3.99%. ANA Holdings 9202.T and Japan Airlines 9201.T climbed 3.26% and 4.88%, respectively.

Shares of department stores also advanced, with Isetan Mitsukoshi Holdings 3099.T up 4.47% and J.Front Retailing 3086.T gaining 4.56%.


Reporting by Junko Fujita; Editing by Subhranshu Sahu