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Japanese stocks slide on yen strength | Japanese stocks slide on yen strength |
(about 4 hours later) | |
Japan's Nikkei index suffered its biggest percentage fall for a month as a stronger yen weighed on exporters. | |
The US dollar fell below 109 yen at one point and has dropped more than 2% against the yen since Monday. | |
Analysts say the change is down to uncertainty over when the US will raise rates, and comments from a Bank of Japan board member who is against deepening negative interest rates. | |
The Nikkei 225 index closed down 393.18 points, or 2.3%, at 16,562.55. | |
Tech firms Sony and Panasonic were on the losers list, along with carmakers Toyota, Nissan and Isuzu. | |
Takata shares fell 5.1%. US carmaker Ford has said it will recall about 1.9 million vehicles in North America, which have been fitted with defective airbag inflators made by the company. | |
Sentiment for Japanese stocks was also hit after Prime Minister Shinzo Abe announced a delay to an increase in the nation's sales tax. The decision has raised concerns about the direction and growth prospects for the economy. | |
Mr Abe has said the increase in the tax from 8% to 10% will be delayed until late 2019. It was originally scheduled to be implemented next year. | Mr Abe has said the increase in the tax from 8% to 10% will be delayed until late 2019. It was originally scheduled to be implemented next year. |
Elsewhere in Asia, China's Shanghai Composite edged up 0.1% to 2,917.31, while in Hong Kong, the benchmark Hang Seng index was also 0.1% higher at 20,784.80. | |
South Korea's Kospi index closed up 0.1% at 1,985.11. Revised growth data released earlier on Thursday showed the economy expanded at an annual rate of 2.8% in the first quarter, compared with a previous estimate of 2.7%. | |
In Australia, the S&P ASX/200 index ended the day down 44.27 points, or 0.8%, at 5,278.90. |