Yen Strengthens, Japanese Stocks Fall—Signs of Intervention
Japanese stocks fell in early trading, particularly those of exporters such as automakers. The main reason: the yen strengthened against the dollar, sparking concerns that exporters' profits could be hit.
The Topix Index fell 1.8% to 3,563.37 at 9:11 a.m. Tokyo time. Meanwhile, the Nikkei weakened 1.7% to 52,914.77.
The pressure was felt most heavily in large-cap stocks. Toyota Motor Corp. was the biggest contributor to the Topix decline after its shares fell 3.9%.
The market picture was also lopsided: of the 1,663 stocks on the Topix, only 173 rose, 1,460 fell, and 30 were unchanged. This means the decline was fairly widespread, not confined to one sector.
According to Shoji Hirakawa of the Tokai Tokyo Intelligence Lab, a strengthening yen tends to weigh on Japanese stocks. He also believes the yen has the potential to strengthen to 145 per dollar, so investors will be extra focused on yen movements.
In addition to the currency, sentiment is also being weighed down by political issues. Concerns about Japan's snap elections are looming, especially as several local media polls show support for Prime Minister Sanae Takaichi's cabinet is starting to decline. (asd)
Source: Newsmaker.id
