Japanese stocks fell after the Federal Reserve indicated that turmoil in financial markets may pose risks to the U.S. economy and data showed a drop in December retail sales.

The Topix index dropped 0.7 percent to 1,391.61 as of 9:05 a.m. in Tokyo, with all of its 33 industry groups retreating. The Nikkei 225 Stock Average slipped 1 percent to 16,999.19. The yen traded at 118.44 per dollar after the Fed said it is “closely monitoring” developments from China to Europe as well as oil for any adverse impact on the American economy. U.S. shares fell more than 1 percent on Wednesday.

Source: Bloomberg