FX.co ★ Japanese Shares Drop as Yen Strengthens

The Nikkei 225 Index fell 2% toward 63,000 on Monday, while the broader Topix Index dropped 2.5% to 3,902, erasing gains from the previous session as the yen extended its rally following confirmation that Japan had conducted coordinated yen-buying operations with the US Treasury. The Finance Ministry also signaled it is prepared to undertake further coordinated interventions if needed and noted it remains in close contact with US authorities. The stronger yen is clouding the earnings outlook for Japan’s export-oriented sectors and making domestic equities less attractive to foreign investors. Losses were widespread across financial, consumer, and technology shares, with Mitsubishi UFJ (-2.9%), Toyota Motor (-5.2%), and Advantest (-2.7%) among the notable decliners. In corporate news, Fanuc shares slumped more than 17% even though the factory automation company raised its full-year guidance on the back of solid sales and profit growth.