Tokyo Shares Open Lower, Yen Jumps

Tokyo, (APP - UrduPoint / Pakistan Point News - 2nd May, 2024) Tokyo stocks opened lower Thursday after US shares dropped, with a jump in the Yen sparking speculation that the Japanese government had intervened in the market for the second time this week.

The benchmark Nikkei 225 index lost 0.64 percent, or 246.77 points, to 38,027.28 in early trade, while the broader Topix index fell 0.27 percent, or 7.46 points, to 2,721.94.

The yen strengthened to 153.04 per Dollar from around 157.58 in New York overnight, later falling back to 155.74 on Thursday morning.

This prompted talk that the Japanese government had bought yen on the market to support the Currency after it fell to 34-year lows.

The yen also jumped almost 3 percent on Monday after diving below 160.

A cheaper yen raises the cost of imports for resource-poor Japan, including energy and food, although it could encourage exports.

The Nikkei average dropped in reaction to overnight falls of US tech shares, analysts said.

"The Tokyo market is under pressure after US semiconductor shares were sold down," brokerage house Monex said, while also noting the yen's trend.

Among major shares, Sony Group fell 0.50 percent to 13,035 yen while Toyota lost 0.80 percent to 3,576 yen.

Fast Retailing, which operates the Uniqlo brand, fell 0.83 percent to 40,850 yen.

Semiconductor shares also suffered.

Tokyo Electron lost 0.34 percent to 34,820 yen. Disco lost 1.63 percent to 45,370 yen.

Tech investor SoftBank Group fell 0.95 percent to 7,715 yen.