Tokyo stocks drop in morning as firmer yen hurts exporters

The Mainichi

3 days ago

TOKYO (Kyodo) -- Tokyo stocks dropped Thursday morning as export-linked shares were sold on a firmer yen against the U.S. dollar.
The 225-issue Nikkei Stock Average fell 210.67 points, or 0.53 percent, from Wednesday to 39,610.61. The broader Topix index was down 18.87 points, or 0.67 percent, at 2,809.29.
The dollar briefly weakened to the upper 145 yen range in Tokyo as U.S. Treasury yields fell on growing expectations of an interest rate cut by the Federal Reserve after President Donald Trump said on social media that the benchmark rate is at least 3 points too high, dealers said.
At noon, the dollar fetched 146.08-09 yen compared with 146.27-37 yen in New York and 146.84-86 yen in Tokyo at 5 p.m. Wednesday.
The euro was quoted at $1.1737-1741 and 171.45-52 yen against $1.1717-1727 and 171.47-57 yen in New York and $1.1707-1708 and 171.91-95 yen in Tokyo late Wednesday afternoon.
Stocks remained in negative territory throughout the morning, weighed down by selling of export-oriented auto and electronics shares on the yen's appreciation, which reduces exporters' overseas profits when repatriated.
The benchmark Nikkei index lacked momentum to cross the 40,000 line as sentiment was dampened by the lack of progress in Japan-U.S. tariff talks and as some investors took to the sidelines ahead of the House of Councillors election on July 20, brokers said.