Xinhua
17 Sep 2020, 16:00 GMT+10
TOKYO, Sept. 17 (Xinhua) -- Tokyo stocks closed lower Thursday after the U.S. Federal Reserve indicating its interest rates will remain low for a prolonged period of time sent the yen higher against the U.S. dollar which dented exporter issues.
The 225-issue Nikkei Stock Average dropped 156.16 points, or 0.67 percent, from Wednesday to close the day at 23,319.37.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 5.95 points, or 0.36 percent, to finish at 1,638.40.
The Fed indicated that it would continue to keep its interest rates at near zero until at least 2023, which saw the yen rise to a seven-week high versus the U.S. dollar.
This negatively impacted issues broadly exposed to overseas markets and reliant on a weaker yen for profitability, local brokers said.
"The Fed's prolonged easing stance made it difficult to see how the yen has any room to depreciate against the dollar," Makoto Sengoku, a market analyst at the Tokai Tokyo Research Institute, was quoted as saying.
"Concerns are growing that the yen's firm tone from now on will slow profit recovery in exporters, which had shown signs of improvement from the coronavirus pandemic," he added.
Japan's central bank meanwhile, at the conclusion of its two-day policy setting meeting, decided to keep its monetary policy unchanged, as widely expected, with the decision having little bearing on the market, analysts here said.
They added however, that investors were keen to hear Bank of Japan Governor Haruhiko Kuroda's remarks later in the day concerning new Prime Minister Yoshihide Suga and the bank's willingness to cooperate with the government's economic policies.
By the close of play, land transportation, nonferrous metal and transportation equipment issues comprised those that declined the most.
Among exporters losing ground on the yen's strength, Mazda Motor skidded down 3.0 percent, while Nissan Motor closed 2.4 percent lower. Sony, for its part, relinquished 1.0 percent.
East Japan Railway Co. fell 4.7 percent, after forecasting a full-year net profit loss for the fiscal year through next March owing to failing patronage due to the pandemic.
Central Japan Railway Co. also closed lower, falling 4.1 percent by the close.
Issues that rose outpaced those that fell by 1,116 to 931 on the First Section, while 127 ended the day unchanged.
On the main section on Thursday, 1.108 billion shares changed hands, dropping from Wednesday's volume of 1.168 billion shares.
The turnover on the penultimate trading day of the week came to 2.003 trillion yen (19.125 billion U.S. dollars).
Get a daily dose of Oakland Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Oakland Times.
More InformationNEW YORK, New York -U.S. stock markets closed with broad gains on Thursday, led by strong performances in U.S. tech stocks, while European...
PARIS, France: L'Oréal is making a fresh play in the booming premium haircare segment with a new acquisition. The French beauty conglomerate...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
MENLO PARK, California: Robinhood is giving European investors a new way to tap into America's most prominent tech names — without...
NEW YORK, New York - U.S. stocks diverged on Wednesday for the second day in a row. The Standard and Poor's 500 hit a new all-time...
NEW YORK CITY, New York: The U.S. dollar continues to lose ground, weighed down by growing concerns over Washington's fiscal outlook...
GENEVA, Switzerland: A new United Nations report alleges that dozens of global corporations are profiting from and helping sustain...
LONDON, UK - Lawmakers in the United Kingdom have voted overwhelmingly to proscribe the direct-action group Palestine Action as a terrorist...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
ISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...
VENICE, Italy: Over the weekend, hundreds of protesters marched through the narrow streets of Venice to voice their opposition to billionaire...