Nikkei falls for seventh consecutive session amid yen strength, low oil prices
Date
9/12/2024 4:51:21 AM
(MENAFN) On Wednesday, Japan's NIKKEI index experienced its seventh consecutive decline, pressured by the yen's surge to its highest level against the dollar this year. The Nikkei index closed 1.5 percent lower at 35,619.77, after earlier dropping more than 2 percent and nearing its lowest point of the month, which was recorded on Monday at 35,247.87. The broader Topix index also saw a decline, falling 1.8 percent to end at 2,530.67 points.
The yen's strength was a significant factor, with the dollar slipping 1.24 percent to 140.71 yen—its lowest level since December 28—before trading slightly higher at 141.16 yen by 0547 GMT. A stronger yen typically negatively impacts companies that rely on exports, as it diminishes the value of their overseas profits when converted back into the local currency. This was reflected in the stock prices of major exporters, with Toyota Motor Corp dropping 3.1 percent, Subaru Corp declining by more than 4 percent, and Honda Motor Co falling 3 percent.
Additionally, energy-related stocks suffered after oil prices fell to a three-year low on concerns over demand. Tokyo Gas and Osaka Gas saw notable declines of 5.6 percent and 5.1 percent, respectively. Other notable drops included Fast Retailing, which fell 1.7 percent, chipmaker Advantest with a 2.3 percent decline, and Tokyo Electron which decreased by 0.2 percent. Sony, a major player in technology and entertainment, also saw a modest decrease of 0.3 percent.
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