Nikkei Stumbles, Yen Suddenly Strengthens
Japanese stocks weakened in early trading, as a strengthening yen made the market wary of the strength of issuers' earnings. The Nikkei index fell around 0.8% to 52,893.
The greatest pressure came from exporter stocks, particularly the automotive and pharmaceutical sectors. Toyota fell around 2.7%, while Daiichi Sankyo fell around 4.8%. A stronger yen typically makes exporters' earnings appear smaller when converted, prompting investors to quickly reduce risk.
In the currency market, USD/JPY fell sharply to around 152.53 from around 154.57 at the Tokyo Stock Exchange's close. Investors are also awaiting comments from Japanese officials on the yen, as well as preparing Prime Minister Sanae Takaichi's economic plans ahead of the early February elections—as policy direction could influence the yen and stock sentiment. (asd)
Source: Bloomberg