TOKYO: Tokyo stocks have dropped 1.13 per cent, hit by a stronger yen as investors await the outcome of a Bank of Japan policy meeting and after the US Federal Reserve said it would be cautious on interest rate hikes.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange on Thursday fell 228.45 points to close at 19,990.82, ending below the psychologically important 20,000 mark for the first time in a month.
The broader Topix index of all first-section shares fell 1.04 per cent, or 17.04 points, to 1,616.66.
Selling pressure grew in late trading as the yen picked up pace, a negative for Japanese exporters profitability.
On forex markets, the US dollar weakened to Y122.96 from Y123.43 in New York.
On Wednesday, the Federal Reserve left its benchmark interest rate unchanged at near zero, but chair Janet Yellen said the first hike in nine years would likely come “later this year”.
Yellen said the economy was still showing areas of weakness and the central bank needed to see more evidence of improvement before embarking on what she stressed would be a series of “gradual” rate increases.
On Wall Street, the Dow added 0.17 per cent, the S&P 500 gained 0.20 per cent while the Nasdaq rose 0.18 per cent.
