Japanese yen gains drag stocks lower
The Japanese stock market experienced a sharp decline after the yen reached its highest levels in three months, with the Nikkei Index falling by 2.2% to 62,956 points. This came following a joint intervention by Japan and the United States to purchase yen in order to curb its expected appreciation. The yen's value rose by 1.4% to around 155.20 against the dollar, putting pressure on the profits of Japanese exporting companies that rely on the dollar, especially technology and chip companies. The market had previously surged by over 4% last Friday after expectations for AI spending diminished, while the market is also reacting to policy interventions by Japan and the US aimed at controlling currency fluctuations.
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