Japan’s Nikkei 225 Stock Average fell the most in more than two months as the yen’s swings weighed on some exporters, while technology shares dropped as speculation about a Federal Reserve rate cut drove investors away from US tech megacaps.
The Nikkei declined 2.4% to 41,190.68 as of market close Tokyo time, the most since April after having reached record highs for three straight days this week
Topix Index down 1.2% to 2,894.56, with financials retreating as the benchmark 10-year bond yield edged lower
The yen was volatile Friday after surging more than 2% against the dollar Thursday in a move that fueled speculation Japan stepped into the market to support its currency. Top foreign-exchange official Masato Kanda told reporters that he wasn’t in a position to say if intervention took place.
The currency’s move “provided a reason to take profit,” said Naoki Fujiwara, a senior fund manager at Shinkin Asset Management. Investors will begin to turn their attention to corporate earnings in the weeks ahead, he said.
Tokyo Electron Ltd. contributed the most to the Topix’s losses, decreasing 6.2%. Out of 2,136 stocks in the measure, 1,316 rose and 721 fell, while 99 were unchanged. Some exporters including Hitachi and Canon declined, while domestic demand-driven companies such as Nitori Holdings climbed on speculation a stronger yen will help lower costs.
Source : Bloomberg
