Japan’s Nikkei sinks to 3-week low as stronger yen harms autos

Japan’s Nikkei share average sank to an almost three-week low on Monday as a more grounded yen scratched the profit standpoint for the country’s exporters, with automakers driving decays.

The Nikkei shut down 0.6% at 33,231.27 after prior sliding as much as 1.22% to reach 33,023.04 interestingly since Nov. 14.

The Topix as a whole fell 0.83 percent.

Transport gear was the most awful entertainer among the Tokyo Stock Exchange’s 33 industry gatherings, declining 2.48%.

The oil explorers were harmed by a significant drop in crude prices, which led to a decline in mining of 2.39 percent.

On Monday, the yen surged to a level that was nearly three months high—146.235 per dollar—before falling back to somewhere around 146.65.

Nomura Securities strategist Kazuo Kamitani stated, “There’s a strong impression that stocks are being pulled around by moves in currency markets.”

“I think it would be quite difficult for yen strength to reach 144 or 143 per dollar, and this may instead be a near-term peak,” he continued simultaneously.

“If there is some positive driver, it wouldn’t be strange for the Nikkei at any moment to push toward 34,000,” Kamitani stated, noting that the Nikkei’s 25-day moving average is pointing strongly upward.

On Nov. 20, the Nikkei reached its highest level in 33 years, 33,853.46.

One of the 225 components of the index fell on Monday, while 54 rose and one remained unchanged.

Mazda’s stock suffered the most, falling 3.93 percent. Nissan lost 3.27 percent and Toyota lost 2.31 percent, both heavyweight competitors.

The greatest drag, however, was chip-production gear monster Tokyo Electron with a 0.59% decay. The next investor in startups, SoftBank Group, lost 1.15 percent.

At the opposite end, delivering was the most amazing performing TSE industry bunch, climbing 1.95%.