Tokyo markets fall on interest rate worries

Tokyo equities markets dropped significantly on Tuesday as investors worried that interest rates in the United States could rise further. The Nikkei 225 dropped 1.8 percent to 15,384.86, while the Topix index closed 1.7 percent lower at 1,56 7.30. The Mother’s market of small-cap stocks, declined by 2.8 percent to 1,355.30.

Exporters saw their shares decline, but there were losses in domestic sectors as well. Real estate was down 3.6 percent as a sector, while the electronics sector declined by 1.8 percent.

Seafood companies were the only real winners on the day, as their international sales continue to grow. Nippon Suisan added 1.4 percent to ¥571, while Maruha gained 3.6 percent to ¥342.

Among electronics companies, consumer electronics giant Sony dropped 1.5 percent to ¥5,110, while Hitachi declined by 1.6 percent to ¥763 and component manufacturer Kyocera lost 2.4 percent to ¥9,220.

Mitsui Fudosan, the largest real estate company in Japan, declined by 2.8 percent to ¥2,300, while Mitsubishi Estate fell 4.1 percent to ¥2,125.

Automobile manufacturers, which sell a huge portion of their cars in the United States, also saw declines. Honda declined by 1.3 percent to ¥7,340 and Nissan closed 1.9 percent lower at ¥1,322.

In the banking sector, Mizuho Trust, part of the Mizuho group fell a further 4.8 percent to ¥280. The shares have been falling since Friday’s “underperform” rating from Goldman Sachs.