Japanese Stocks Fall as Yen Weakens on Trump Win
Japanese stocks fell on Thursday as the yen slumped to its lowest since July, with Donald Trump’s victory in the U.S. presidential election fueling expectations of a weaker yen due to his expansionary economic agenda.
The Nikkei 225 fell 0.25% to close at 39,381.41.
Trump’s economic policies are seen as more expansionary and inflationary than Harris’, reducing the likelihood of aggressive Federal Reserve interest rate cuts.
The Japanese market, known for its size and liquidity, saw heavy trading in the dollar-yen pair during Asian hours.
The yen fell 1.6% to 153.98 per dollar in Tokyo, raising import costs and adding pressure on the central bank to consider raising interest rates, further complicating matters for the ruling Liberal Democratic Party after its recent drubbing in the House of Representatives elections.
In economic updates, Japan’s cash income in September rose 2.8% year-on-year to 292,551 yen, the Health Ministry said, following a 3% increase in August.
Contractual income rose 2.4%, while special income jumped 16.1%.
Companies with 30 or more employees saw cash income rise 3.6% to 328,230 yen, although overtime pay fell 0.4% for companies with five or more employees.
In corporate moves, Hoshino Resorts REIT (TYO:3287) locked in interest rates on 980 million yen of loans, with an 800 million yen loan from Mizuho Bank at 1.405% until April 2032 and a 180 million yen loan at 1.486% until October 2032.(ayu)
Source: MT Newswires
