The Nikkei 225 Index Closes 0.70% Lower

The Nikkei 225 Index fell 1.7% to close at 65,269, while the broader Topix Index dropped 1.83% to 4,050 on Tuesday, ending a two-day winning streak as the yen extended its advance to its strongest level since February. A stronger yen weighs on earnings prospects for Japan’s export-focused industries while making Japanese assets more expensive for foreign investors. Markets were also positioning for an expected Bank of Japan rate hike, backed by strong economic data showing July wages rose at their fastest pace since 1997 and second-quarter GDP growth was revised higher. Meanwhile, elevated oil prices following renewed US-Iran fighting kept inflation risks and interest rate concerns firmly in focus. Technology stocks led the losses, with Kioxia Holdings (-3.6%), Advantest (-2%), Taiyo Yuden (-7.9%), Ibiden Co (-6.3%) and Fujikura (-3%) among the biggest decliners.

The Nikkei 225 Index dropped 467 points or 0.70 percent on Tuesday to close at 65933 points. Losses were led by Citizen Holdings (-12.26%), Casio Computer (-9.29%) and JTEKT (-7.72%). Offsetting the fall, top gainers were Softbank (6.72%), Nitori Holdings (6.31%) and Idemitsu Kosan (2.97%).

The Nikkei 225 Index gained 0.4% to trade above 66,700, while the broader Topix Index fell 0.6% to around 4,100 on Tuesday, with Japanese shares lacking clear direction as the yen extended gains to reach its strongest level since February. A stronger yen weighs on earnings prospects for Japan’s export-oriented industries while making Japanese assets more expensive for overseas investors. Markets were also preparing for an expected Bank of Japan rate hike, supported by strong economic data showing July wages rose at their fastest pace since 1997 and second-quarter GDP growth was revised higher. Meanwhile, elevated oil prices following renewed US-Iran fighting kept inflation risks and interest rate concerns firmly in focus. Among individual stocks, SoftBank Group (4.1%), Advantest (1.4%) and Fujikura (91.1%) posted notable gains, while Taiyo Yuden (-5.4%), Ibiden Co (-2.4%) and Murata Manufacturing (-4.8%) recorded sharp declines.