Investing.com - Financial Markets Worldwide
🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Japan shares see biggest daily drop in 6 weeks as yen firms on Fed view

Published 11/06/2020, 08:04
Updated 11/06/2020, 08:06
© Reuters.
JP225
-
TOPX
-
7201
-
8750
-
7261
-
8306
-
IAIRL.T
-
IMING.T
-
ISHIP.T
-

SYDNEY, June 11 (Reuters) - Japanese shares suffered their
biggest one-day fall in six weeks on Thursday as the safe-haven
yen strengthened after the U.S. Federal Reserve's dour economic
outlook spooked investors.
The benchmark Nikkei average .N225 plunged 2.8% to
22,472.91, its largest daily decline since May 1, moving further
away from a 3-1/2-month closing high hit earlier in the week.
"The Nikkei's recent rapid rise to the 23,000-mark was not
driven by inflows from real money investors. So when
short-covering is done, a correction was inevitable," said
Soichiro Matsumoto, chief investment officer Japan at Credit
Suisse.
Fed on Wednesday signalled that it plans years of
extraordinary support for the U.S. economy facing a
pandemic-induced recession. Fed Chair Jerome Powell said he was
"not even thinking about thinking about raising rates" and that
policy would have to be proactive with rates near zero out to
2022. This pressured rate-sensitive financial stocks. Dai-ichi
Life Holdings 8750.T tumbled 6.8%, while Mitsubishi UFJ
Financial Group (MUFG) 8306.T dropped 4.9%.
In the currency market, the risk of more easing kept the
U.S. dollar under pressure, seeing it skid to a one-month low
versus the safe-haven yen to trade at 106.90 yen JPY=EBS .
As a firmer yen hurts Japanese manufacturers' profits made
abroad when repatriated, shares of export-oriented automakers
came under pressure, with Nissan Motor 7201.T diving 8.8% and
Mazda Motor 7261.T shedding 6%.
The broader Topix .TOPX lost 2.2% to 1,588.92, also
posting its biggest one-day drop, with all but one of the 33
sector sub-indexes on the Tokyo exchange finishing lower.
Highly cyclical sea transport .ISHIP.T , air transport
.IAIRL.T and mining .IMING.T were the three worst performing
sectors on the main bourse.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.