Nikkei falls to four-month low as strong yen bites

Investors turn risk-averse as yen rises against the dollar

Photograph: iStock

Photograph: iStock

 

Japan’s Nikkei share average gave up early gains and closed at at four-month low on Tuesday in choppy trade as investors turned risk averse again as the yen rose rising against the dollar.

The Nikkei ended 0.7 per cent lower at 21,244.68 points, its lowest closing level since mid-October.

The dollar dropped 0.4 per cent to 108.23 yen, moving closer to Friday’s five-month low of 108.05 yen.

The broader Topix declined 0.9 per cent to 1,716.78.

Air transport and land transport sectors as well as automakers underperformed. ANA Holdings dropped 2.0 per cent and East Japan Railway Co shed 1.7 per cent, while Toyota Motor Corp shed 2.5 per cent and Honda Motor Co stumbled 1.7 percent.

Textile and mining sectors outperformed. Toray Industries surged 3.8 percent and Inpex Corp added 1.0 per cent. - Reuters