Japanese Shares Struggle as Yen Strengthens

On Wednesday, the Nikkei 225 Index experienced a slight increase of 0.05%, closing at 53,359, while the broader Topix Index declined by 0.79% to 3,535, reflecting a mixed performance in Japanese equities. The market was impacted by the significant appreciation of the yen, which has risen approximately 4% over the past three sessions. This surge in the yen's value is driven by mounting speculation about a potential joint currency intervention by the US and Japan. Meanwhile, the dollar has weakened following comments from US President Donald Trump, who expressed no concern over the dollar's recent depreciation. Export-focused companies, such as Toyota Motor, Mitsubishi Heavy Industries, and Sony Group, faced declines of 3.2%, 2.6%, and 2.5% respectively. In contrast, technology stocks saw gains, bolstered by the previous night's success of US tech giants, as markets anticipate a slew of major tech earnings. Notably, SoftBank Group's shares climbed 3.7% following the announcement of its plans to invest an additional $30 billion in OpenAI.