Strong yen pushes Tokyo stocks down

Japanese stocks closed lower on Tuesday as the Nikkei index briefly dropped over two per cent due to the yen’s strength against the US dollar amid expectations of a bigger interest rate cut by the Federal Reserve.

The 225-issue Nikkei Stock Average ended the day at 36,203.22, down 378.54 points or 1.03 per cent from Friday’s closing. The broader Topix index also declined, closing at 2,555.76, down 15.38 points or 0.60 per cent.

Insurance and bank shares led the overall market decline, influenced by falling US and Japanese long-term bond yields. Additionally, automakers and other exporters experienced downward pressure due to concerns over the strengthening yen.

Market analysts in Japan suggested that the Federal Reserve might opt for a more aggressive half-percentage-point interest rate cut at the conclusion of its two-day policy meeting on Wednesday.

Attribution: Xinhua