FX.co ★ Japanese Shares Struggle as Yen Strengthens

The Nikkei 225 Index slipped 0.2% to around 64,200 on Thursday, while the broader Topix Index added 0.7% to 4,110 in mixed trade, as Japanese equities struggled for clear direction following a sudden strengthening of the yen amid speculation that authorities had conducted a rate check. The firmer currency pressured the earnings outlook for Japan’s export-oriented sectors and made domestic assets more expensive for foreign investors.

At the same time, stocks drew some support from a pullback in oil prices after President Donald Trump indicated that the latest attacks on Iran would be short-lived. Global bond yields also eased from recent highs as investors continued to reassess the outlook for inflation and interest rates.

At the stock level, notable declines were seen among technology names including Advantest (-1.6%), Fujikura (-1.2%) and Taiyo Yuden (-1.3%), while financial shares advanced, led by Mitsubishi UFJ (1.5%), Sumitomo Mitsui (2.1%) and Mizuho Financial (1.5%).