Japanese Shares Drop as Yen Surges
2026-09-08 06:54
By
Jam Kaimo Samonte
1 min. read
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.