Tokyo Stocks Drop At Open As Yen Surges

TOKYO, (UrduPoint / Pakistan Point News -23rd Sep,2016) - Tokyo shares opened lower Friday as the Yen jumped against the Dollar after the Fed decided to keep interest rates unchanged, putting pressure on the US Currency.

The benchmark Nikkei 225 index slipped 0.28 percent, or 47.78 points, to 16,759.84 in early deals, while the Topix index of all first-section issues fell 0.47 percent, or 6.30 points, at 1,346.37.

Financial markets in Tokyo were closed on Thursday for a national holiday. The yen surged to around 100 against the dollar after the Fed on Wednesday kept its benchmark Federal funds rate at an ultra-low 0.25-0.50 percent, saying it need to see a stronger economy before lifting borrowing costs.

The yen was at 101.23 per dollar in early Tokyo trade Friday, weaker than 100.

77 in New York but still stronger than levels seen earlier this week. A stronger yen is negative for Japanese exporters as it makes their products more expensive abroad and erodes profits when repatriated.

On Thursday, the Japanese government voiced concerns over the yen's sharp move, repeating warnings about a possible intervention to weaken the currency. "We can't help but take necessary steps if these speculative moves continue," said Masatsugu Asakawa, the finance ministry's vice minister for international affairs.

Advertising giant Dentsu tumbled as much as seven percent to 5,040 yen following news reports that it overcharged major client Toyota on internet advertising.