Japan Shares Closed Lower Amid a Rising Yen and US Political Uncertainty

Japanese stocks closed lower on Thursday, as the rise of the yen threatened exporters’ profits and amid fears that no agreement will be reached on an important US stimulus package before the presidential elections scheduled for the third of November.

The benchmark Nikkei index closed down 0.7% to 23,474.2 points, while the broader Topix index fell 1.09% to 1619.79 points.

The yen jumped to a one-month high against the dollar on Wednesday after investors became more concerned about faltering negotiations on a new round of US fiscal stimulus.

Some traders are also reducing their exposure to riskier assets ahead of the US election, which could limit gains in Japanese stocks.

Sentiment was also affected by the increase in new cases of coronavirus in Europe and the United States.

Only 40 of the Nikkei stocks rose, against 180 shares.