Investing.com - Financial Markets Worldwide
🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Tokyo shares drop as yen strengthens on Fed dour view; carmakers crash

Published 06/11/2020, 12:07 PM
Updated 06/11/2020, 12:10 PM
JP225
-
TOPX
-
7201
-
8750
-
7267
-
8306
-
IMING.T
-
ISHIP.T
-
ISTEL.T
-

SYDNEY, June 11 (Reuters) - Japanese shares dropped on
Thursday, with automakers and financials leading the declines,
as the yen firmed after the U.S. Federal Reserve made no policy
changes in the first economic projections of the pandemic era.
The benchmark Nikkei average .N225 dropped 1.1% to
22,882.28 by the midday break, further off its 3-1/2-month high
touched earlier in the week.
Fed on Wednesday signalled it plans years of extraordinary
support for the U.S. economy facing a pandemic-induced
recession. Fed Chair Jerome Powell said he was "not even
thinking about thinking about raising rates" and that policy
would have to be proactive with rates near zero out to 2022.
This pressured rate-sensitive financial stocks. Dai-ichi
Life Holdings 8750.T shed 4.8%, while Mitsubishi UFJ Financial
Group (MUFG) 8306.T slid 3.9%.
In the currency market, the risk of more easing kept the
U.S. dollar under pressure, seeing it skid to a one-month low
versus the yen to trade at 106.90 yen JPY=EBS .
As a firmer yen hurts Japanese manufacturers' profits made
abroad when repatriated, shares of export-oriented automakers
came under pressure, with Nissan Motor 7201.T tumbling 5.1%
and Honda Motor 7267.T diving as much as 4.2%.
The broader Topix .TOPX lost 0.9% to 1,610.73 by the
midday recess, also off its highest level since Feb. 21 touched
earlier this week, with all but two of the 33 sector sub-indexes
on the Tokyo exchange trading lower.
Highly cyclical sea transport .ISHIP.T , mining .IMING.T
and iron and steel .ISTEL.T were the worst three performing
sectors on the main bourse.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.