Nikkei Drifts Lower as Yen Rises

The Japanese markets are drawing the logical conclusion from the weaker dollar: less exports, less profitability, weaker 'recovery' etc.

Tokyo stocks were lower in midday trade on Thursday as the shares of the country's largest exporters tumbled, after the dollar fell to a 10-month low against the yen overnight. The benchmark Nikkei 225 average was 0.7 per cent lower at 8,055.13, while the broader Topix index was down 0.5 per cent to 818.58. The dollar fell to a low of Y116 against the yen in the aftermath of the US Federal Reserve's signal about the risks of deflation. The White House reiterated that its "strong dollar" policy was unchanged but economists said market sentiment towards the currency remained weak. The dollar recovered a little ground in morning Asian trade to Y116.5 from its Y116 low, but shares of Japan's leading exporters - many of which derive the bulk of their revenues from overseas markets - were broadly lower. Sony lost 2.5 per cent to Y2,890 and Canon was down 2.7 per cent to Y4,780. Shares of Toyota, which is set to announce its annual results after the market close, were off 1.3 per cent to Y2,745. Honda was 1.7 per cent lower at Y4,040 and Nissan was 0.6 per cent lower at Y320.
Source: Financial Times
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