Nikkei records its lowest level in a month affected by the rise of the yen

Japanese stocks recorded the worst performance among Asian markets on Wednesday, July 12, with the Nikkei index falling to its lowest level in a month, as the yen’s rise curbed a rally in the market, but the possibility of listing a unit of the SoftBank Group limited losses.

The Nikkei fell 1.3% to 31,791.71 points in morning trading, before recouping some of its losses and closing down 0.8% at 31,943.93 points. The broader Topix index lost 0.7% to close at 2221.48 points.

The yen and stocks usually move in opposite directions, as the currency’s rise affects the ability of export companies to compete and raises the price of stocks for foreign investors.

The yen rose about 0.6% to 139.50 against the dollar.

The Nikkei has lost more than 5% since hitting a three-decade high last week.