Tokyo stocks opened lower on Tuesday, extending a rout on Wall Street, as investors bet on more aggressive US Fed rate hikes to address inflation following key price data. The benchmark Nikkei 225 index was down 1.56pc, or 419.93 points, at 26,567.51 in early trade, while the broader Topix index was down 1.38pc, or 26.24 points, at 1,874.82. “Japanese shares are seen starting with huge falls after US indexes dropped for the fourth straight session on worries over tightening Federal Reserve monetary policy,” Toshiyuki Kanayama, senior market analyst at Monex, said in a commentary. Wednesday’s Fed “meeting will be closely watched for how the Fed will react to” Friday’s US inflation data, Tapas Strickland, senior analyst at National Australia Bank, said in a note. The dollar fetched 134.04 yen in early Asian trade, against 134.42 yen in New York overnight, after the Japanese currency plunged to its lowest level against the greenback on Monday — 135.19 yen. The slump is due to sky-high US inflation fuelling a widening monetary policy gap between Japan and the world’s largest economy. Among major shares in Tokyo, Toyota was down 1.36pc at 2,102.5-yen, Sony Group dropped 3.25pc to 11,155 yen, and Uniqlo operator Fast Retailing was off 1.65pc at 66,050 yen.