TOKYO: Japan’s Nikkei share average fell on Monday as a stronger yen weighed on investor sentiment, with heavyweight chip-related stocks leading the losses.
The Nikkei was down 1% to 37,994.83, as of 0009 GMT.
The yen strengthened against the dollar on Friday after Federal Reserve Chair Jerome Powell gave an unambiguous signal that the long-anticipated interest rate cut would come next month.
Chip-testing equipment maker Advantest fell 2% to drag the Nikkei the most. Chip-making equipment maker Tokyo Electron lost 1.96%.
The yen and stocks typically move in opposite directions, since a stronger currency hurts exporters’ competitiveness and also makes stocks more expensive for foreigners.
Japan’s Nikkei touches 3-week high after Wall Street gains
Furniture and kitchen goods retailer Nitori Holdings rose 2.5% to give the biggest support to the Nikkei.
Cosmetics maker Shiseido gained 2.3%. The broader Topix fell 0.9% to 2,661.25, with Toyota Motor declining 2% to drag the index the most.
Comments