Japan's Nikkei Stock Average Slips from Record Peak on Concerns over BOJ Policy, Stronger Yen

Yomiuri Shimbun

3 days ago

TOKYO, Aug 14 (Reuters) – Japan's Nikkei share average slipped on Thursday, pulling back from the record high reached in the previous session, amid concerns over the Bank of Japan's (BOJ) potential policy shift and a stronger yen.
The Nikkei .N225fell 1.3% to 42,764.04 as of 0137 GMT.
The index crossed the key 43,000 metric for the first time on Wednesday, marking six consecutive sessions of gains. That took its winning run to 9% since the drop on August 4.
'Investors sold stocks as they locked in profits on growing concerns about the market overheating,' said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
'Also, the market became cautious that the Bank of Japan may raise interest rates soon after (U.S. Treasury Secretary Scott) Bessent interfered with Japan's central bank's policy,' he said.
In an interview with Bloomberg Television, Bessent said the BOJ is going to hike interest rates as it is 'behind the curve' in handling monetary policy.
The comments came as bets that the Federal Reserve will resume rate cuts next month sent the U.S. dollar to a three-week low. FRX/
A stronger yen typically weighs on exporter shares by reducing the value of overseas earnings when converted back into Japanese currency.
The broader Topix .TOPX lost 1% to 3,060.33 and was set to snap a six-session winning streak.
Shares of chip-testing equipment maker Advantest 6857.T lost 0.3% and chip-making equipment maker Tokyo Electron 8035.T fell 1.1%.
Automakers declined, with Toyota Motor 7203.T and Honda Motor 7267.T losing 1.77% and 0.55%, respectively.
Bucking the somber mood, technology investor SoftBank Group 9984.T rose 2.82%.