It's now official: Japan is not playing vassal to the interests of the US stock market any longer:
TOKYO, Sept 22 (Reuters) - Japanese share prices took a tumble on Wednesday, weighing on other Asian markets, after the Bank of Japan's surprise decision to spurn calls for a monetary easing triggered a sharp rise in the yen.
Major stock markets in the region lost ground, dragged down by yen-related jitters and a two percent tumble in Wall Street shares overnight.
Tokyo's benchmark Nikkei average of 225 shares slid more than three percent in the morning, led by global manufacturers like Canon, Honda and Fujitsu amid worries the yen's rally would erode the yen value of their overseas income.
"The market is definitely wary of a strong yen and we don't see it weakening for a while yet," said Ryoji Musha, chief strategist at Deutsche Securities in Tokyo.
The yen resumed its upward climb after the Bank of Japan's Policy Board defied expectations on Tuesday and said it would leave monetary policy unchanged, denting hopes of joint U.S.-Japan intervention to weaken the yen.
By Wednesday midday in Tokyo the dollar was around 104.90 yen after briefly sliding to a an overnight low of 103.83 in New York trade and compared with 107 yen just before the BOJ policy announcement on Tuesday.
The Nikkei ended Wednesday's morning session at 17,369.78, down 563.01 points or 3.14 percent from Tuesday's close but above the early Wednesday low just under 17,250.
marketwatch.newsalert.com
|
