Tokyo Shares Slump As Strong Yen Hits Exporters
Umer Jamshaid Published August 18, 2016 | 12:23 PM
TOKYO, (UrduPoint / Pakistan Point News - 18th Augst,2016) : Tokyo shares slumped on Thursday as fading expectations of an imminent Federal Reserve rate hike sparked a rally in the Yen against the dollar, hitting exporters including Toyota and Nissan. A rise in the yen is a negative for Japan Inc, making exporters less competitive and hurting their profitability. Minutes from the US central bank's July meeting said policymakers were keeping their "options open." But its cautious tone did little to raise hopes for a rise in US borrowing costs, which would tend to lift the greenback by stirring demand for dollar-denominated assets. In Tokyo, the Dollar fell to 99.86 yen from 100.28 yen Wednesday in New York on the news. "The minutes struck a cautious note against any rushed rate hike decision, while continuing to support the idea of a moderated rate increase," Mitsushige Akino, an executive officer at Ichiyoshi Asset Management, told Bloomberg News.
"The odds are for a December hike, rather than a September one, and the yen looks set to extend gains from here." By the close, the benchmark Nikkei 225 index shed 1.55 percent, or 259.63 points, to 16,486.01, while the broader Topix index of all first-section shares also fell 1.55 percent, or 20.34 points, to 1,290.79. The Japanese market came under further pressure after fresh data Thursday showed exports slipped in July as shipments of vehicles, ships and steel products fell. The gloomy figures served as the latest reminder of the impact of a stronger yen. Toyota shed 1.76 percent to finish at 5,900 yen, while rival Nissan was down 2.56 percent at 961.1 yen and Mazda slumped 3.88 percent to 1,509 yen. Utilities also dragged the market down, with Fukushima-operator Tokyo Electric Power tumbling 4.16 percent to 345 yen and Kansai Electric down 3.36 percent at 842.2 yen.
Related Topics
Recent Stories
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 28 April 2024
Today Gold Rate in Pakistan 28 April 2024
Fresh wave of rainfall in AJK continues for the second consecutive day
Babar, bowlers help Pakistan level series 2-2 against New Zealand
Attack in restive Chilean province leaves three police officers dead
PM, Saudi Royal court advisor discuss ways to boost economic ties
England clinch third successive Women's Six Nations Grand Slam
DC Bahawalnagar leads fight for fair bread prices
Sheffield Utd relegated from Premier League
02 proclaimed offenders arrested by Wah Police
Pakistan level T20I series with nine-run victory over New Zealand
Minister meets Chinese Consul General, discusses bilateral cooperation, Chinese ..
More Stories From Business
-
Customs team lauded for seizing mis-declared containers
26 minutes ago -
PFC sends budget proposals to ministries, FBR: Mian Kashif
1 hour ago -
3rd Pak-Kyrgyzstan Investment Conference to be held in May
1 hour ago -
NPO to organize workshop on ‘mastering talent acquisition: strategies for success'
1 hour ago -
China's e-commerce logistics index rises in March
2 hours ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 28 April 2024
7 hours ago
-
Today Gold Rate in Pakistan 28 April 2024
7 hours ago -
Cotton to be sown on 4m acres this year
18 hours ago -
China innovation driving global cooperation: international auto experts hail Chinese technology
18 hours ago -
Chinese market as key to electrification: Global auto giant executives
19 hours ago -
KP desires to seek gems’ sector accreditation from Thailand: SACM
20 hours ago -
LCCI urges PM to halt implementation of SRO 350(I)/2024
22 hours ago