Investor sentiment was hurt after Fed Chair Kevin Warsh took a hawkish tone in his Jackson Hole speech. He said inflation is not slowing enough and stressed the Feds commitment to bringing inflation back to 2%, raising concerns that US interest rates could remain higher for longer.

Higher oil prices also added pressure after the US military targeted Iranian rocket launchers that were preparing to deploy mines in the Strait of Hormuz.

On the domestic front, Japans industrial output unexpectedly increased in July, while retail sales growth came in stronger than expected. However, technology stocks mostly declined, with Advantest falling 4.5%, Terra Drone dropping 17.8%, Murata losing 2.8% and Disco Corp declining 2.1%.

For the month, the Nikkei gained 3.03%, while the Topix rose 3.82%.

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First Published: Aug 31 2026 | 3:50 PM IST

Source: Read the original article on www.business-standard.com