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Yen weak in 148 zone against US dollar after 32-year low
Tokyo stocks ended lower on profit-taking following sharp gains on Friday and lackluster automakers amid fears over a possible US recession resulting from the Federal Reserve's aggressive interest rate hikes.
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This photo illustration shows Japanese 10,000 yen banknotes in Tokyo on April 22, 2022. (AFP/Behrouz Mehri )
T
he yen stayed weak in the upper 148 range against the US dollar Monday in Tokyo after hitting a new 32-year low late last week, while the Japanese finance minister's fresh warning kept investors wary of another yen-buying intervention.
Tokyo stocks ended lower on profit-taking following sharp gains on Friday and lackluster automakers amid fears over a possible US recession resulting from the Federal Reserve's aggressive interest rate hikes.
The 225-issue Nikkei Stock Average ended down 314.97 points, or 1.16 percent, from Friday at 26,775.79. The broader Topix index finished 18.63 points, or 0.98 percent, lower at 1,879.56.
On the top-tier Prime Market, decliners were led by mining, pharmaceutical, and wholesale trade issues.
The yen maintained its weak tone after touching 148.86 versus the dollar in New York on Friday, as prospects of aggressive rate hikes by the Fed were further reinforced by a US survey showing rising inflation expectations, dealers said.
The Fed's monetary tightening policy contrasts sharply with Japan's stance. Bank of Japan Governor Haruhiko Kuroda reiterated Monday the central bank's commitment to maintain ultralow rates to support the fragile domestic economy.
Such policy contrasts have led to a widening differential in interest rates between Japan and the United States, making the dollar more attractive against the yen.
But dollar-buying moves were somewhat curbed in Tokyo after Finance Minister Shunichi Suzuki warned that the government will "take decisive action" if it sees excessive volatility caused by speculative moves, after it conducted a yen-buying intervention last month for the first time in 24 years, dealers said.
"There may be an intervention if the dollar rises by more than 1 yen abruptly," said Takuya Kanda, senior researcher at the Gaitame.com Research Institute.
On the stock market, investors sold a wide range of shares after the Nikkei index gained over 800 points on Friday.
While a weak yen lifted some air carriers and train operators on hopes of attracting more inbound travelers, it failed to support exporters as its positive effects on such firms were offset by concerns over a possible recession in the world's largest economy, analysts said.
Suzuki Motor lost 72 yen, or 1.5 percent, to 4,650 yen, while Toyota Motor fell 8 yen, or 0.4 percent, to 2,000 yen, and Yamaha Motor shed 26 yen, or 0.9 percent, to 2,909 yen.
Japan Airlines gained 25 yen, or 0.9 percent, to 2,741 yen, while ANA Holdings, the parent company of All Nippon Airways, climbed 34.5 yen, or 1.2 percent, to 2,871 yen.
Among Prime Market issues, declining issues outnumbered advancers 1,390 to 384, while 63 ended unchanged.
Trading volume on the Prime Market fell to 1,057.21 million shares from Friday's 1,319.31 million.
