Japan Stocks Dropping as Yen Rises on US Headlines

Japanese stocks fell Thursday, September 17th, driven by the decline of export companies after the US Federal Reserve pledged to keep interest rates near zero until at least 2023, pushing the yen to its highest level in seven weeks against the dollar.

The Nikkei index fell 0.67% to 23,319.37 points, while the non-essential consumer goods and industrial sectors led the decline. The broader TOPIX index fell 0.36% to 1638.40.

The Fed pledged to keep interest rates near zero until inflation is on track to surpass the 2% target, pushing the yen to 104.80 per dollar, its strongest level since July 31.

The rising yen put pressure on the auto sector, one of the major exporters. Honda Motor lost 1.5%, Isuzu Motors lost 5.09%, and Nissan Motor fell 2.37%.

The Bank of Japan kept its policy unchanged at a meeting earlier today. Traders are now focusing on the press conference of the bank’s governor, Haruhiko Kuroda, as he is likely to confirm his desire to cooperate with the new prime minister, Yoshihide Suga, analysts said.

Kines Corp. for the electronics industry topped the list of winners among the 30 major stocks on the TOPIX index, as it rose 1.26%, followed by Seven & I Holdings, which rose by the same percentage.

East Japan Railway, which fell 4.67%, was among the lowest-performing stocks on the TOPIX 30, followed by Central Japan Railway, which fell 4.11%.