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Japan's Nikkei falls on stronger yen; chip stocks limit losses
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Japan's Nikkei falls on stronger yen; chip stocks limit losses

- Japan's Nikkei share average fell on Friday after a stronger yen weighed on export-oriented stocks, while gains in chip-related stocks limited losses.

The Nikkei .N225 was down 0.89% at 36,507.1 by the midday break, after opening 0.13% higher. For the week, the index is set to rise 1.21%.

The broader Topix .TOPX lost 0.84% to 2,570.71 and is poised to post a 0.19% weekly decline.

"The stock market has been so closely linked with the currency market because investors are worried about the impact of the yen rising below 140 to the dollar on corporate earnings," said Kentaro Hayashi, a senior strategist at Daiwa Securities.

"But we expect domestic firms can boost their profits even as the yen rises to around 130. So the market might be too sensitive to the yen's move."

The yen JPY=EBS rose against the dollar in early trade, hovering close to an 8-1/2-month high of 140.71 it touched on Wednesday. FRX/

Rubber makers .IRUBR.T fell 1.93% to become the worst performers among the Tokyo Stock Exchange's (TSE) 33 industry sub-indexes.

The automakers' index .ITEZPT.T fell 1.27%, with Toyota Motor 7203.T and Honda Motor 7267.T losing 1.75% and 1.27%, respectively.

Entertainment company Konami Group 9766.T fell 4% to become the biggest loser on the Nikkei.

Heavyweight Fast Retailing 9983.T, the owner of the Uniqlo brand, fell 1.12% to drag the Nikkei the most.

Chip-related stocks rose, with Advantest 6857.T climbing 0.54% and Disco 6146.T rising 1.14%.

Of more than 1,600 stocks trading on the TSE's prime market, 22% rose, 73% fell, while 3% traded flat.



(Reporting by Junko Fujita; Editing by Rashmi Aich)

((junko.fujita@thomsonreuters.com;))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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