Japan’s Nikkei share average declined on Tuesday as investors expressed caution regarding potential yen-buying interventions and anticipated Toyota Motor’s quarterly results later in the day. The Nikkei declined by 0.11 percent to 63,684.85 at the midday break, whereas the broader Topix decreased by 0.26 percent to 3,949.90. The Nikkei dropped nearly 1 per cent on Monday following a statement from Japan’s Finance Ministry indicating that Tokyo and Washington had engaged in coordinated yen-buying intervention and would not hesitate to take further action. “After the currency intervention, dollar/yen moved sharply in the yen’s favour from around 163. Authorities have also indicated they could intervene again if the yen weakens further, so caution remains,” said Shuutarou Yasuda.
The dollar traded at 157.5 yen, reflecting an increase of 0.22 percent. A stronger yen diminishes the value of foreign earnings for Japan’s numerous prominent exporters. Japan’s AI-linked heavyweights exhibited a mixed performance, as technology investment conglomerate SoftBank Group experienced a decline of 4.5 percent, whereas cables and optical fibre manufacturer Fujikura saw an increase of 5 percent.
Toyota Motor, the largest automaker globally, is anticipated to report a fifth consecutive quarterly decrease in operating profit, impacted by declining vehicle sales and increasing costs. Investors may also scrutinise Toyota’s assumed exchange rates and related guidance, given the sensitivity of its earnings to currency fluctuations, according to Hiroshi Namioka. Overall, market breadth exhibited a negative trend, with 141 decliners in the Nikkei compared to 83 gainers and one remaining unchanged.
The largest percentage declines in the index were observed in meat processor NH Foods, which fell by 8.69 percent, followed closely by parcel delivery and logistics company Yamato Holdings, which experienced a decrease of 5.63 percent, following disappointing earnings that did not meet investor expectations. The largest percentage gainers in the index were cables and components manufacturer Furukawa Electric, which increased by 9.97 per cent, followed by pharmaceutical company Otsuka Holdings, which rose by 7.09 per cent.