Japan: Nikkei extends losses on Kuroda remarks

18 Apr 2022 , 04:58 PM

Japan share market finished session lower in relatively thin trading on Monday, 18 April 2022, as selling triggered by the Bank of Japan chiefs remarks against the yens sharp depreciation.

Usually, a softer yen boosts Japans export-oriented equities but if the yen sinks too low import bills could become oppressive and the weak currency may be signaling a slowing economy.

At closing bell, the 225-issue Nikkei Stock Average stumbled 293.48 points, or 1.08%, to 26,799.71. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 16.23 points, or 0.86%, to 1,880.08.

Bank of Japan Governor Haruhiko Kuroda said Monday that the yens recent depreciation against the U.S. dollar has been quite rapid, while warning of the negative impact the currencys retreat may have on the countrys fragile economic recovery. The remark, made at a parliamentary session, came after the yen briefly fell to a new 20-year low in the upper 126 range earlier in the day. Finance Minister Shunichi Suzuki also said at the session the yens current weakness can be described as bad with surging materials prices having not been fully passed on to consumers and a lack of wage growth hurting demand.A weak yen inflates costs for companies importing goods, commodities and services into resource-poor Japan and pressures households, but also helps exporters by boosting overseas profits when repatriated.

Leading the upside was Credit Saison, up 21%, on reports activist investor City Index Eleventh took a 5.1% stake in the financial house. On the downside were Sumitomo Pharma, off 5.1%

CURRENCY NEWS: The Japanese yen traded at 126.54 per dollar after weakening last week from below 125 against the greenback.

Powered by Capital Market – Live News