TOKYO, Aug 29 (Reuters) - Japan's Nikkei share average slumped to its lowest close in two weeks on Monday, tracking losses on Wall Street after Federal Reserve Chair Jerome Powell said tight U.S. monetary policy would be needed "for some time" to tame inflation.
The Nikkei ended 2.66% lower at 27,878.96, with 202 stocks of the 225 constituents down, 20 up and three flat.
Industrials dropped the most, followed by technology sub-index. Energy was the only sector to gain, supported by a rally in crude oil prices.
The broader Topix sank 1.79% to 1,944.10.
The U.S. S&P 500 tumbled 3.37% on Friday and the tech-heavy Nasdaq dropped 4.1%. S&P 500 and Nasdaq futures indicated further losses for Monday, slipping 0.87% and 1.22%, respectively.
Traders ramped up bets for another super-sized 75 basis-point rate hike at the Federal Open Market Committee's next meeting on Sept. 20-21 to 70.5%.
"There is a decent chance of a rebound in U.S. stocks today," from a technical perspective, said Kazuo Kamitani, a strategist at Nomura Securities.
"If that's the case, Japanese stocks should also gradually rise. But if U.S. stocks fall again, Japanese stocks should continue to slide towards 27,000 heading into the next FOMC meeting."
Uniqlo store operator Fast Retailing was the top drag in the Nikkei, hacking off 84 points with a 2.8% drop.
Chipmaking equipment manufacturer Tokyo Electron was next, shaving away 82 points with a 5.1% slide. Peer Advantest lost 4.19%.
Startup investor SoftBank Group shaved 44 points from the Nikkei to be the third-biggest drag, declining 3.66%.
Some auto stocks were among the winners, as the yen's slide to a more than one-month low against the dollar boosted revenue from overseas sales.
Isuzu gained 2.24%, Mazda added 0.99% and Subaru rose 0.78%.
The biggest carmakers fell, with Toyota dropping 0.85% and Nissan losing 0.69%.
Honda swung to a 0.41% gain after slipping in the morning session.
(Reporting by Kevin Buckland; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
