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Tokyo stocks end lower as yen goes stronger

TOKYO
2024-08-01 15:25

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TOKYO, Aug. 1 (Xinhua) -- Tokyo stocks closed sharply lower on Thursday over a stronger yen, triggering losses of automobile and other export-related stocks.

Japan's benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, ended down 975.49 points, or 2.49 percent, from Wednesday to close the day at 38,126.33, the first decline in four trading days.

The broader Topix index also plunged by finishing 90.57 points, or 3.24 percent, lower to 2,703.69.

As the Tokyo foreign exchange market saw the Japanese yen hit a four-month high by appreciating to the 148 range against the dollar during the day, market watchers here noted raising concerns about deteriorating export profitability.

Short-term overseas investors also increased selling in stock index futures in line with the yen's appreciation. At one point, the Nikkei fell below the psychological threshold of 38,000, with a drop exceeding 1,300 points.

Following the Bank of Japan's announcement of its policy rate hike to 0.25 percent on Wednesday, BOJ Governor Kazuo Ueda did not rule out the possibility of an additional rate hike within the year, which accelerated yen buying and dollar selling in the forex market.

The remarks also rapidly diminished expectations of profit expansion for export companies benefiting from the weak yen. Toyota, which announced its earnings in the afternoon, experienced further declines.

On the Prime Market, declining issues outnumbered advancing ones by 1,541 to 97, with seven issues remaining unchanged.

Issues of Fast Retailing and SoftBank Group were among the notable decliners.
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