TOKYO: Japanese stocks fell as exporters slid on a fourth day of gains for the yen, while a measure of fishery and agricultural companies climbed.
The Topix index lost 0.5 percent to 1,516.19 at the close in Tokyo, extending its decline for the week to 1.4 percent, a fifth straight weekly drop. The Nikkei 225 Stock Average slipped 0.1 percent to 18,769.06 on volume 8.4 percent lower than the 30-day average. The yen strengthened 0.3 percent to 120.11 per dollar after touching the highest since Oct. 28.
“Then yen is back where it was before U.S. interest rates were raised,” said Juichi Wako, a senior strategist at Nomura Holdings Inc. in Tokyo. “The fact that markets aren’t pricing in the next interest rate hike in the U.S. is the biggest factor” for the dollar’s weakness.
The Federal Reserve raised interest rates this month and forecast an appropriate rate of 1.375 percent at the end of next year. Futures markets see a 51 percent chance the Fed will lift rates again by its March meeting, and odds of less than 10 percent policy makers will follow through on their prediction by December 2016. The Standard & Poor’s 500 Index fell 0.2 percent on Thursday in a shortened trading session, as energy shares pared their strongest weekly gains since October.
