TOKYO: Japanese shares were under fresh pressure on Thursday as domestic chip stocks followed a slide on Wall Street overnight and as more details from the Bank of Japan (BOJ) pointed to hawkishness and further monetary tightening.

The Nikkei index was volatile, ending lower as investors struggled for direction, following its plunge on Monday and subsequent recovery.

Insights from the BOJ also revived expectations of more unwinding of yen carry trades, after the central bank’s release of minutes of its July meeting.

The Nikkei index fell 0.74% to close at 34,831.15. It was at one point down as much 2.5% and up 0.8%. Following the roller-coaster 12.4% plunge on Monday and bounce on Tuesday, the index is down roughly 20% from its July peak above 42,000.

The broader Topix fell 1.11% to 2,461.7.

The volatility prompted the finance minister to say authorities are closely watching stock market developments, but that they are not ready to take action.

Earlier in the day, details from the Bank of Japan pointed to hawkishness and further monetary tightening as the central bank released minutes of its July meeting.

Some BOJ board members called for the need to keep raising interest rates, with one saying they should eventually be increased to at least around 1%, a summary of opinions voiced at the July 30-31 meeting showed on Thursday.

At the July meeting, the BOJ raised its short-term policy target to 0.25% from a range of 0% to 0.1%, driving expectations the rate could be raised to as high as 0.5% this year.

Markets had rallied and the yen had slipped on Wednesday when the BOJ’s influential Deputy Governor Shinichi Uchida said the bank will not raise rates when markets are unstable.

“Investors may resume yen carry trade once the global markets turn stable, which will push the yen’s value lower and that will lift Japanese equities,” said Toru Sasaki, chief strategist at Fukuoka Financial Group.