Asian shares showed mixed performance on Thursday, with Tokyo’s benchmark Nikkei 225 experiencing a significant decline as the U.S. dollar fell against the yen. The Nikkei 225 dropped 2.6% to 38,094.24 in morning trading, reflecting concerns about the impact of a stronger yen on Japan’s major exporters like Toyota Motor Corp., whose overseas profits are diminished when the yen appreciates.
In contrast, other regional indices saw modest gains. Australia’s S&P/ASX 200 increased by 0.4% to 8,125.80, while South Korea’s Kospi rose 0.5% to 2,785.56. Hong Kong’s Hang Seng Index fell 0.3% to 17,285.66, and the Shanghai Composite also dropped 0.3% to 2,931.50.
In currency markets, the U.S. dollar weakened to 149.61 Japanese yen from 149.92 yen. The euro was stable at $1.0831, compared to $1.0830 previously. The recent decline of the dollar against the yen follows the Bank of Japan’s rate cut decision on Wednesday, which reversed the yen’s prior weakness when it was trading at around 160 yen per dollar. This stronger yen is beneficial for Japan’s import costs but poses challenges for exporters.
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