Tokyo stocks fall as firmer yen hits exporters amid US fiscal woes
TOKYO (Kyodo) -- Tokyo stocks fell Thursday, with the Nikkei index closing at a two-week low, as export-linked shares were sold on a firmer yen amid concerns over deteriorating U.S. fiscal health.
The 225-issue Nikkei Stock Average ended down 313.11 points, or 0.84 percent, from Wednesday at 36,985.87, its lowest level since May 8. The broader Topix index finished 15.79 points, or 0.58 percent, lower at 2,717.09.
On the top-tier Prime Market, decliners were led by air transportation, transportation equipment, and oil and coal product issues.
The U.S. dollar fell to the lower 143 yen range in Tokyo as the yen, viewed as a safe-haven asset, was bought on concern that President Donald Trump's tax cut plan could lead to rising U.S. debt, dealers said.
The dollar briefly rose to the lower 144 yen range in early morning trading after the Japanese and U.S. finance chiefs reaffirmed that exchange rates should be determined by markets, but the statement had limited market impact, dealers said.
The Tokyo stock market was weighed down by overnight declines in U.S. equities, bonds and the dollar, while the yen strengthened further following a meeting between Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent.
The yen had been climbing against the dollar amid speculation that the United States might address its weakness ahead of Wednesday's talks between the two officials on the sidelines of a Group of Seven meeting.
"The triple selloff in U.S. financial markets apparently had more impact" than the outcome of the bilateral meeting, said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory Co.
Export-oriented auto stocks were sold as a stronger yen reduces automakers' overseas profits when repatriated, while heavyweight tech shares also fell due to a rise in Japanese long-term interest rates, brokers said.
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