Nikkei closes at its lowest level in more than a week

Japan’s Nikkei index closed at its lowest in more than a week on Monday, as the yen’s rise weighed on exporters and investors bet that the Bank of Japan may have to adjust its stimulus policies this week at the earliest.

The Nikkei closed Monday’s session down 1.14 percent to 25,822.32 points, its lowest closing level since January 5. The broader Topix index closed down 0.88 percent, at 1,886.31 points.

The yen hit its highest level since May at 127.215 against the dollar.

The Bank of Japan sets policy on Wednesday after shocking markets last month by doubling the range within which it allows 10-year government bond yields to move around zero to between -0.5% and -0.5%.

The benchmark yield exceeded that target for a second day on Monday, reaching 0.51 percent.

The performance of the auto sector was weak, as Nissan shares fell 1.69 percent and Suzuki 1.63 percent.

Fast Retailing, owner of department stores Uniqlo, also fell 1.96 percent.