Nikkei index retreating, Yen’s rise is putting pressure on export companies

On Thursday, the Japanese Nikkei index recorded the largest decline in two weeks, retreating from its highest level in a month, with the fading effect of the Bank of Japan’s decision to maintain its stimulus policies, as well as the rise in the yen, which pressured the shares of export companies.

The index closed 1.44 percent lower at 26468.62, losing more than half of the 2.5 percent gains it posted on Wednesday, when the central bank resisted pressure from the bond market and kept its policy unchanged.

On Wednesday, the index reached 26,816.68 points, a level not seen since December 20.

The broader Topix index fell 1 percent to 1915.62 on Thursday, also giving up a large part of the gains it recorded on Wednesday, amounting to 1.68 percent.

The yen rose by 0.8 percent to reach 127.885 per dollar, and continued to rebound from the low level it recorded on Wednesday at 131.58, and is now heading towards the level of 127.215 that it recorded on Monday, which was the highest in seven months.

Mitsubishi Motors was the biggest loser on the Nikkei index, down 5.26 percent. Toyota shares fell 2.36 percent and Nissan 3.61 percent.

On the other hand, the shares of supermarket operating companies rose amid improving hopes for a recovery in tourism with the easing of Covid restrictions. J shares were. Front Retailing was the best performer on the Nikkei index, as it jumped 3.04 percent.