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Nikkei
Source: Newsmaker.id
The Nikkei 225 index turned lower during Wednesday's trading (Sept. 9), shedding earlier gains as the Japanese yen extended its rally to reach its strongest level in nearly seven months. The Nikkei closed down 0.19% at 65,143, as the strengthening Japanese currency once again weighed on the outlook for export-oriented companies.
The yen's appreciation drew increased attention after U.S. Treasury Secretary Scott Bessent warned market participants against continuing to bet on the Japanese currency's weakness. Bessent stated that he had a solid understanding of the Bank of Japan's measures to maintain yen stability, heightening alertness regarding potential policies that could further strengthen the currency.
A stronger yen tends to be a negative factor for Japanese exporters, as it reduces the value of overseas earnings when converted back into the domestic currency. Additionally, a stronger yen can make Japanese assets relatively more expensive for some foreign investors.
Pressure on the stock market also stemmed from rising oil prices amidst escalating conflict in the Middle East. Higher energy costs have fueled concerns about inflationary pressure and raised expectations that interest rates could rise further. This situation presents an additional challenge for Japan, a nation heavily reliant on energy imports.
Several major stocks posted losses. Advantest fell 2.8%, Mitsubishi UFJ Financial Group declined 1.5%, Nintendo slumped 4%, and Fast Retailing dropped 2.7%. These declines offset support from stocks that had initially posted gains earlier in the session.