Nikkei falls amid yen strength, Seven & I Holdings hype

(MENAFN) The Nikkei index experienced a decline as the yen strengthened against the dollar, closing 1.77 percent lower at 37,388.62 points. This drop ended a five-day rally that had seen the index gain 8.7 percent the previous week. The retreat was exacerbated by the yen's appreciation, which was influenced by expectations that the minutes from the Federal Reserve's July meeting would reveal a dovish stance and anticipation of Federal Reserve Chairman Jerome Powell's upcoming speech at Jackson Hole.

The strengthening yen led to a broader decrease in the dollar, which fell sharply against the Japanese currency. Additionally, the Nikkei index was dragged down by losses in major tech stocks, with Tokyo Electron and Fanuc, both key players in the chip-making and robotics industries, falling by 3.11 percent and 3.23 percent, respectively. Despite the overall market decline, Seven & I Holdings Inc. stood out with a significant 23 percent surge in its share price. This jump followed news that the company, which operates the 7-Eleven convenience store chain in Japan, had received a preliminary takeover offer from Canada's Alimentacion Cos-Tar.

Seven & I Holdings has formed a special committee to review the takeover offer, although no decisions have been made yet by the committee or the board. Among the 225 stocks listed on the Nikkei index, 191 fell, 22 rose, and one remained unchanged. The broader Topix index also saw a decline of 1.4 percent, closing at 2,641.14, with Toyota Motor Corp contributing to the downturn by falling 3.06 percent. 

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