Roundup: Japan's Nikkei drops for 4th straight session, yen tumbles to 24-year low against USD

0 Comment(s)Print E-mail Xinhua, June 15, 2022
Adjust font size:

TOKYO, June 15 (Xinhua) -- Japan's Nikkei extended its losing streak for a fourth straight session Wednesday, with the yen plunging to a 24-year low versus the U.S. dollar on expectations the U.S. Federal Reserve will further hike rates to battle inflation.

The 225-issue Nikkei Stock Average fell 303.70 points, or 1.14 percent, from Tuesday to close the day at 26,326.16.

The broader Topix index, meanwhile, lost 22.52 points, or 1.20 percent, to finish at 1,855.93.

"The market has been falling recently as investors expect the Fed to take a more hawkish stance and speed up the pace of its monetary tightening," Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., was quoted as saying.

As a result, dealers here said, the yen hit a 24-year low against the U.S. dollar, plunging to the 135.60 at one point, with the drop also fueled by concerns over the gulf in interest rates widening between Japan, the U.S. and other major economies.

The Bank of Japan (BOJ), in contrast to other central banks including the Fed, has remained steadfast in its commitment to an ultra-loose monetary policy, believing global inflationary pressure to be only temporary.

However, the government here on Wednesday told the BOJ it expects the bank to coordinate in tackling the yen's recent and rapid depreciation.

"We expect the BOJ to appropriately take necessary measures in coordination with the government," Chief Cabinet Secretary Hirokazu Matsuno told a press briefing on the matter.

"Excessive volatility and disorderly movements in foreign exchange rates adversely impact the stability of the economy and financial system. We will closely cooperate with the U.S. and other monetary authorities and respond appropriately when necessary," Matsuno, Japan's top government spokesperson, said ahead of the BOJ's own two-day policy meeting starting Thursday.

Other brokers concurred that the market was nervous about the Fed's aggressive policy and whether further rate hikes will inhibit the growth of the world's largest economy which in turn would dampen demand for Japanese exports.

"The market is nervous, and you can feel how hard it is to move in this environment," a market participant at a domestic securities company, was quoted as saying.

By the close of play, oil and coal product, mining, and electric power and gas issues comprised those that declined the most, with issues that fell outpacing those that rose by 1,545 to 257 on the Prime Market, while 36 ended the day unchanged.

Energy issues lost ground on concerns over rising prices, with oil exploration giant Inpex falling 3.7 percent, while Japan Petroleum Exploration dropped 4.6 percent. Idemitsu Kosan, meanwhile, closed down 3.9 percent.

Technology issues also weighed, with chip-making equipment manufacturer Tokyo Electron losing 1.4 percent to become the Nikkei's biggest drag, while Advantest ended the day 1.1 percent lower.

Retail-oriented issues also closed in negative territory, with Mitsukoshi Holdings relinquishing 5.2 percent, while fellow department store operator Takashimaya lost 4.3 percent.

On the Prime Market on Wednesday, 1,226.53 million shares changed hands, dropping from Tuesday's volume of 1,260.90 million shares.

The turnover on the third trading day of the week came to 2,762.33 billion yen (20.54 billion U.S. dollars). Enditem

Follow on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from