Japanese Intervention Weighs on Tokyo Markets
The Nikkei 225 index fell 2%, nearing the 63,000 level during Monday's trading, while the Topix index declined 2.5% to 3,902. These drops reversed gains made in the previous session.
Pressure on the Japanese stock market mounted after the yen continued to strengthen. The Japanese government confirmed it had conducted a coordinated yen-buying operation with the U.S. Department of the Treasury.
Japan's Ministry of Finance also stated it was prepared to undertake further interventions if necessary. Japanese authorities emphasized that they remain in close communication with U.S. counterparts to maintain stability in the foreign exchange market.
The yen's appreciation weighs on the profit outlook for export-dependent Japanese companies, as overseas earnings translate into lower figures when converted to the domestic currency. This situation also makes Japanese stocks less attractive to foreign investors.
Shares of Mitsubishi UFJ fell 2.9%, Toyota Motor plunged 5.2%, and Advantest declined 2.7%. Meanwhile, Fanuc shares dropped more than 17%, even though the automation company had raised its full-year performance forecast.
Source: Newsmaker.id
