TOKYO: Japan’s Nikkei share average fell on Monday, extending losses as the yen strengthened against the dollar, while retailer Seven & i holdings surged 23% as it received a takeover bid.

The Nikkei index closed 1.77% lower at 37,388.62, snapping a five-day winning run that pushed up the index 8.7% last week.

“The Nikkei was expected to fall this week after its sharp rally, but the yen’s gain against the dollar during the session pushed that move faster,” said Fumio Matsumoto, chief strategist at Okasan Securities.

“Today’s move suggests that the market will remain volatile for a while.”

The US dollar declined broadly and slipped sharply against the yen in particular as investors bet on a dovish tone emerging in the Federal Reserve’s July policy meeting minutes and Chair Jerome Powell’s upcoming speech at Jackson Hole.

Chip-making equipment maker Tokyo Electron slipped 3.11% to drag the Nikkei the most. Robot maker Fanuc fell 3.23%.

Bucking the trend, Seven & I holdings surged 23% to a daily limit high as the company, which operates the 7-Eleven convenience store chain in the country, said it received a preliminary takeover offer from Canada’s Alimentation Couche-Tard.