TOKYO: Japan’s Nikkei share average ended lower on Tuesday, dragged by a stronger yen and profit-taking after the index climbed past the key 44,000 mark earlier in the session.
The Nikkei 225 Index surged as much as 1.24 percent to an unprecedented 44,185.73 before closing 0.4 percent lower at 43,459.29, snapping a three-day rally. The broader Topix finished the day down 0.5 percent.
Shares started strong, continuing sharp gains from Monday, on prospects for increased government spending following the resignation of fiscal hawk Prime Minister Shigeru Ishiba.
“We think the government is likely to adopt a more expansionary stance in the fiscal debates from the autumn, given the need to secure the cooperation of one or more opposition parties, all of which are calling for procyclical fiscal policy,” BofA Securities analysts said.
Stocks lost momentum as the yen strengthened, rising as much as 0.5 percent to 146.82 against the US dollar, denting earnings prospects for exporters.
Japan’s chief trade negotiator Ryosei Akazawa said in a post on X that US tariffs on Japanese autos are set to be lowered by September 16, clearing up ambiguity over a trade deal sketched out in July.
Comments
Comments are closed for this article.