Nikkei posts biggest drop in 2 weeks after Fed, dismal earnings

TOKYO, Jan 29 (Reuters) – Japan’s Nikkei average posted the biggest one-day drop in two weeks on Thursday, hit by dismal earnings from the likes of Komatsu Ltd and signs the U.S. Federal Reserve is on course to raise rates this year despite a shaky global outlook.

The Nikkei fell 1.1 percent to 17,606.22, the biggest one-day percentage drop since Jan. 16.

The broader Topix fell 1.1 percent to 1,413.58 while the JPX-Nikkei Index 400 shed 1.2 percent to 12,820.95.

The Federal Reserve signalled it remains firmly on track with plans to raise interest rates this year despite a deteriorating global outlook.

Construction equipment makers Komatsu tumbled 8.5 percent and Hitachi Construction Machinery dived 11 percent after reporting poor earnings.

(Editing by Shri Navaratnam)