Nikkei drops as hawkish Fed and trade concerns curb risk appetite

Reuters

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    TOKYO, June 14 (Reuters) - Japan's Nikkei share average
dropped on Thursday after the U.S. Federal Reserve forecast a
slightly faster pace of rate hikes this year, while concerns
about a U.S.-China trade war also hurt sentiment.
    The Nikkei  .N225  ended down 0.99 percent to 22,738.61.
    As expected, the Fed raised its benchmark overnight lending
rate a quarter of a percentage point to a range of 1.75 percent
to 2 percent, on the back of strong U.S. economic growth.
Policymakers also projected a slightly faster pace of rate
increases in the coming months.  urn:newsml:reuters.com:*:nTLADHEE2K
    Worries about global trade also dented investors' risk
sentiment. U.S. President Donald Trump is expected to meet top
trade advisers to decide whether to activate threatened tariffs
on billions of dollars in Chinese goods.  urn:newsml:reuters.com:*:nL1N1TF2BU
    "The Fed's hawkish tone does not help the market, which is
more worried about a global trade war, which would have a
negative impact for a much longer term," said Takuya Takahashi,
a strategist at Daiwa Securities.
    Shares of exporters such as automakers and electronics
stocks came under pressure.
    Nissan Motor Co  7201.T  fell 1.3 percent, Hitachi  6501.T 
shed 2.05 percent and Panasonic Corp  6752.T  dropped 1.89
percent.
    Mining stocks underperformed after oil prices eased, with
Inpex Corp  1605.T  losing 2.23 percent.
    Shippers bucked the broader weakness and advanced after the
Baltic Dry Index  .BADI , or freight charges, rose overnight.
Mitsui OSK Lines  9104.T  gained 1.25 percent and Nippon Yusen
 9101.T  added 1.09 percent.
    The broader Topix  .TOPX  dropped 0.92 percent to 1,783.89.

 (Reporting by Ayai Tomisawa and the Tokyo markets team; Editing
by Sam Holmes)
 ((shinichi.saoshiro@thomsonreuters.com; Reuters Messaging:
shinichi.saoshiro.reuters.com@reuters.net
+813-6441-1774))

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