Tokyo stocks drop as exporters sold on stronger yen
TOKYO (Kyodo) -- Tokyo stocks fell Thursday, led by selling of export-oriented auto issues on a stronger yen amid concern that Japan could be urged by the United States to address the currency's weakness.
The 225-issue Nikkei Stock Average ended down 372.62 points, or 0.98 percent, from Thursday at 37,755.51. The broader Topix index finished 24.33 points, or 0.88 percent, lower at 2,738.96.
On the top-tier Prime Market, decliners were led by transportation equipment, securities house and insurance issues.
The U.S. dollar fell to the upper 145 yen range in Tokyo, as the yen was bought on speculation that the United States may broach its weakness during talks between the U.S. and Japanese finance ministers that could take place next week, dealers said.
On the stock market, auto shares were notably sold on concern about the adverse impact of the yen's appreciation, after automakers projected lower profits for this business year or refrained from releasing guidance, citing uncertainty caused by hefty U.S. tariffs.
"Investors opted to sell for now amid unclear prospects of tariffs and exchange rates as Japan-U.S. trade negotiations are expected to progress," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
U.S. President Donald Trump is believed to favor a weaker dollar, having previously accused Japan of devaluing its currency and purposely creating a trade surplus with Washington.
While early-week stock market gains reflected investor optimism after the United States and China said Monday they had agreed to sharply cut tariffs, participants have recently grown cautious ahead of further talks between Tokyo and Washington, Yamaguchi said.
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