Japan’s Nikkei falls over 1% amid currency intervention caution — TradingView News

Japan’s Nikkei share average fell more than 1% on Thursday as a majority of the companies in the index traded ex-dividend, while investors remained cautious in anticipation of local authorities’ intervention into the currency market.

The Nikkei NI225 was down 1.2% at 40,273.29 by 0202 GMT, while the broader Topix TOPIX had slipped 1.36% to 2,761.32.

“The market is cautious about a possible currency intervention. It is not clear at which level and when the Japanese government will step in,” said Shuji Hosoi, a senior strategist at Daiwa Securities.

“Foreign investors are eager to buy Japanese stocks but they want to buy them cheap. So they are monitoring how far the yen is allowed to fall.”

The yen USDJPY fell to a 34-year low against the dollar on Wednesday, prompting Japan’s three main monetary authorities to hold an emergency meeting to discuss the weak yen.

In a briefing afterwards, top currency diplomat Masato Kanda said he “won’t rule out any steps to respond to disorderly FX moves.”

The yen was last traded at 151.33 against the dollar.

On Thursday, the Nikkei was also dragged lower by the ex-dividend stocks, losing about 260 points after many of its components went ex-dividend, strategists said.

Chip-testing equipment maker Advantest 6857 fell 2.01% to become the biggest drag on the Nikkei, while chip-making equipment maker Tokyo Electron 8035 lost 0.63%.

Uniqlo-brand owner Fast Retailing 9983 slipped 0.75%.

All but three of the 33 industry sub-indexes on the Tokyo Stock Exchange fell, with paper makers (.IPAPR.T) falling 4.88% to become the worst performer.

Energy explorers (.IMING.T) rose 0.93% to become the best performing sector.

Of the 225 Nikkei components, 35 stocks rose and 190 fell.