Yen strength pressures Japanese exporters once again, pushing the Nikkei share average lower for a second straight session.The benchmark index dropped 1% to close at 37,755.51 on Thursday. Therefore, that marked its second consecutive decline after recently hitting a near three-month high. A stronger yen made overseas earnings less valuable for Japan’s major exporters. This currency shift sharply impacted market sentiment. Export-heavy firms led the retreat across sectors.
Yen strength pressures Nikkei share average in Japanese exporters the hardest in the auto industry.Transport equipment stocks tumbled 2.8%, the worst performance on the Tokyo Stock Exchange. Toyota plunged 3.4%, while Honda and Nissan each fell 3.9%. These losses followed news of currency policy talks between the U.S. and South Korea. Traders now expect the U.S. may push for a weaker dollar. That speculation pushed the Korean won up—and dragged the yen higher.
Yen strength pressures Japanese exporters across tech and consumer goods sectors too.Electronics makers like Sony and Nintendo joined the downturn. Sony fell 2.8%, while Nintendo slipped 2.2%. Fast Retailing, which owns Uniqlo, lost 1.5%. The retail giant was the biggest single drag on the Nikkei. Nikkei share losses reflected broader concern about a sustained rise in the yen.
The Nikkei shared had previously enjoyed a strong run.The index gained 25%. That rally was driven by easing recession fears and optimism over U.S. trade. But momentum faded as currency pressures returned. Now, investors watch exchange rates more closely than before. Weaker global demand could deepen the impact of yen appreciation.
Still, not every sector shared in the losses.Shipping stocks rose 2.4%, the day’s strongest performers. Analysts say that global freight rates helped drive interest in that group. In contrast, most other industries moved in the opposite direction. As global currencies shift, Japan’s market may face further volatility. For now, Nikkei share average Drops currency remains the key driver of sentiment. Tokyo exchange. Analysts credited the gains to improving Sino-U.S. trade relations, which lifted sentiment about global cargo traffic.
