Japanese stocks fell at the close of trading, with the Nikkei losing 730 points.

Japanese stocks fell significantly at the close of trading on Wednesday, with the Nikkei Index losing about 730 points to end at 39,180.23 points, amid rising expectations of a rate hike by the Bank of Japan alongside a contraction in core machinery orders in the country. In this context, Bank of Japan member Seiji Adachi fueled market expectations that the central bank might raise interest rates again; by stating that the Bank of Japan would increase its policy rate at a pace exceeding the inflation rate if the chances of core inflation surpassing 2% increase. Additionally, the growth rate of core machinery orders in Japan recorded a contraction of 1.9% in August, following a contraction of about 0.1% in July, which contradicted market expectations for a growth of 0.1%. This reflects a hit to productivity within Japan, which could negatively impact economic activity. Overall, these developments adversely affected the Japanese stock market today and pushed both major indices to clearly decline by the end of trading, with anticipation of the release of trade balance and national inflation data this week. By the end of Asian trading, Japanese stocks declined, with the Nikkei Index losing about 730.32 points, a drop of 1.83%, to record 39,180.23 points, marking the lowest level for the Nikkei in four sessions. The Topix Index also fell, losing its peak over five sessions, dropping to 2,690.66 points, reflecting a decrease of 1.21%.