Tokyo Stocks Down By Break On Yen Surge

TOKYO, (UrduPoint / Pakistan Point News -23rd Sep,2016) - Tokyo shares fell Friday morning as a stronger Yen hit the outlook for Japanese exporters' profits. The market took a breather following a public holiday Thursdy and after global stocks rallied in response to the US and Japanese central banks'decisions to keep their easy-money policies in place.

A pick up in the yen dented demand for shares of Japanese exporters -- their profits slide when the Currency is strong. "Even though globally the Fed's decision to hold off from raising rates has been regarded as positive, the stronger yen is a source of concern for Japanese equities," Takashi Ito, a strategist at Nomura Securities, told Bloomberg News.

This week, the Bank of Japan said it would target boosting inflation and the Federal Reserve pressed on with policies that makes cash cheap. The announcements soothed concerns that the years of ultra-low borrowing costs could be nearing an end as central bankers run out of ideas on how to kickstart torpid growth.

At the break, Tokyo's benchmark Nikkei 225 index was down 0.

12 percent, or 20.73 points, at 16,786.89, while the Topix index of all first-section shares fell 0.26 percent, or 3.48 points, to 1,349.19.

The Dollar was buying 101.13 yen, up from around 100 yen following the Fed's move but still off levels seen earlier this week. On Thursday, the Japanese government voiced concerns over the yen's sharp moves, repeating warnings about a possible intervention to weaken the currency.

Japan's top government spokesman, Yoshihide Suga, on Friday said the government was "concerned". "We will take necessary steps if these sort of moves continue," he told reporters. In share trading, automakers lost ground with Toyota falling 2.88 percent to 5,967 yen and Honda down 2.40 percent to 3,006 yen.

Advertising giant Dentsu tumbled 5.89 percent to 5,110 yen following news reports that it overcharged clients including Toyota on internet advertising. Sony rose 1.18 percent to 3,413 yen following news reports that Chinese conglomerate Wanda is going to collaborate on movie projects with Sony's US-based film unit.