Japanese Stocks Fall as Stronger Yen, Tariffs Weigh on Exporters
Japanese stocks fell as a stronger yen weighed on exporters, and as companies vulnerable to U.S. trade policy such as automakers and pharmaceuticals sold off.
The Topix index fell 0.7% to 2,747.18 as of 9:14 a.m. in Tokyo. Toyota Motor Corp. was the biggest contributor to the Topix decline, down 1.5%. Of the 1,694 stocks in the index, 406 rose and 1,176 fell, while 112 were unchanged. The Nikkei fell 0.8% to 38,836.33.
It will be difficult for stocks to bounce back after starting the day lower, given that there is no specific event in sight to counter the yen’s rise, said Takashi Ito, a senior strategist at Nomura Securities. He added that heavy speculation that the Bank of Japan will raise interest rates again is strengthening the currency.
The yen strengthened 0.2% to 151.10 against the dollar. Equity markets elsewhere in Asia were also under pressure after Federal Reserve minutes suggested it was in no hurry to cut interest rates.
Source: Bloomberg
