TOKYO: Japan’s Nikkei share average snapped a three-day winning streak to end lower on Friday as a stronger yen dampened appetite. However, investors scooped up stocks with a strong outlook, capping declines.
The Nikkei fell 0.72% to close at 38,787.02, and was down 1.28% for the week. The broader Topix slipped 0.54% to 2,737,23. “With the yen on the rise, the market was worried that the Japanese firms’ earnings next (fiscal) year would not be as strong as this year,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
The yen climbed to a nine-week high as market players piled on bets in favour of more interest rate hikes by the Bank of Japan this year. A stronger Japanese currency tends to hurt exporters’ shares as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.
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