Japanese Shares Drop as Yen Strengthens

The Nikkei 225 Index dropped 2% toward 63,000, while the broader Topix Index declined 2.5% to 3,902 on Monday, reversing the previous session’s gains as the yen extended its rally after Japan confirmed it had conducted coordinated yen-buying operations with the US Treasury. The Finance Ministry also warned it stands ready to carry out additional coordinated interventions if necessary, adding that it remains in close contact with US authorities. A stronger yen clouds the earnings outlook for Japan’s export-oriented industries and makes domestic equities less attractive to foreign investors. Heavy losses were recorded across financial, consumer, and technology stocks, with Mitsubishi UFJ (-2.9%), Toyota Motor (-5.2%), and Advantest (-2.7%) among the biggest decliners. In corporate news, Fanuc shares plunged more than 17% despite the factory automation company raising its full-year guidance on the back of robust sales and profit growth.


