TOKYO: Tokyo stocks ended lower Tuesday, with investors disheartened by aggressive tightening by the Federal Reserve and jittery over economic uncertainty in China.

The benchmark Nikkei 225 index lost 1.81 percent, or 486.54 points, to 26,334.98, while the broader Topix index slid 1.38 percent, or 26.01 points, to 1,863.63.

The dollar fetched 125.57 yen, against 125.37 yen on Monday in New York.

Investors are digesting the hawkish stance of monetary policymakers at the US central bank, who are seen leaning towards more aggressive tightening than previously expected.

Tracking losses on Wall Street, the Nikkei started trading lower, and “falls kept widening after that, amid worries over US interest rate hikes,” Okasan Online Securities said.

Other factors included growing uncertainty regarding China’s economy, which “prompted a sell-off particularly among economically sensitive stocks,” Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.