TOKYO: Japan’s Nikkei share average fell on Friday as the yen strengthened on growing expectations of an interest rate hike by the Bank of Japan (BOJ) after hotter-than-expected inflation data.
The Nikkei closed 0.4% lower at 38,208.03. It was down 0.2% on the week, marking its third consecutive week of losses. The broader Topix finished down 0.2% at 2,680.71.
The US dollar/yen pair broke below 150 for the first time in over a month on growing bets that the BOJ will hike rates again next month.
Investors now see a 60% chance the BOJ would hike rates in December. This weighed on exporter shares, with automaker Toyota Motor and tech and entertainment conglomerate Sony Group sliding 2.1% and 1.7%, respectively.
Nissan Motor was the biggest percentage loser on the Nikkei, down 4%. Meanwhile, banks and insurance stocks were boosted by prospects of the rate hike, sending Dai-ichi Life Holdings soaring 3.5% and Chiba Bank rallying 4.2% to land among the Nikkei’s top percentage gainers.
The benchmark posted a 2.2% decline in November, its worst monthly performance since April, as the market struggled amid geopolitical uncertainties and the US presidential election.
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