Nikkei index slides 1% as markets eye Yen

Japanese stocks were under pressure today despite firm cues from US markets. The Nikkei 225 Index dipped 643 points or 1% on Monday to close at 63719 points. Losses were led by Nippon Electric Glass, down 17.55%, Fanuc, down 15.39% and Toto, down around 13%. Nikkei had gained in last week and managed to hit above 64000 mark on Friday but currency market volatility capped upside. The US and Japan have confirmed they had acted to prop up the value of the Japanese yen against the US dollar after yen tanked to around four-decade low recently. The US dollar dipped near 155-yen mark and weighed on the Japanese stocks. Nikkei has lost around 8.60% over last one-month.

Meanwhile, the economic cues are upbeat. Japan’s manufacturing output rose at its fastest pace in more than 12 years in July, with across-the-board improvements in sub-indexes, including a sharp surge in new orders buoyed by AI-related demand, a survey showed today. The S&P Global Japan Manufacturing Purchasing Managers’ Index (PMI) came in at 54.5 in July, easing slightly from 54.8 in June and the flash reading of 54.7, but marking the seventh consecutive month of expansion

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