Tokyo shares edge down on stronger yen

Tokyo, Oct 26 (DPA) Tokyo stocks inched lower in Tuesday morning trading as export-oriented issues were hurt by the yen’s appreciation.

The benchmark Nikkei 225 Stock Average lost 17.76 points, or 0.19 percent, to trade at 9,383.4 while the broader Topix index was down 2.2 points, or 0.27 percent, at 819.03.

Japanese Prime Minister Naoto Kan’s cabinet approved a 5.09-trillion-yen ($62.9 billion) stimulus package Tuesday to address the yen’s rise and counter deflation.

The yen was still hovering in the upper-80 yen range in the morning after the Japanese currency hit a fresh 15-year high of 80.41 yen to the dollar Monday.

A stronger yen has a negative impact on Japanese exporters as it makes exports less competitive and erodes overseas earnings when revenues are repatriated.

On currency markets at 9 a.m. (0000 GMT), the dollar traded at 80.80-82 yen, up from Monday’s 5 pm quote of 80.49-51 yen.

The euro traded at $1.3921-3922, down from $1.4031-4032 Monday, and at 112.49-51 yen, down from 112.94-98 yen.

Leave a Reply

Your email address will not be published. Required fields are marked *