Japan's Nikkei slips as yen strengthens

The Nikkei 225 fell 0.19% to close at 65,143 on Wednesday, giving up its earlier gains as the Japanese yen strengthened further to its highest level in nearly seven months.

The stronger yen weighed on investor sentiment as it can reduce the earnings outlook for Japan?s export-focused companies. Comments from US Treasury Secretary Scott Bessent, warning against betting on further yen weakness, also added to expectations of possible currency intervention by Japanese authorities.

Meanwhile, rising oil prices amid growing tensions in the Middle East increased concerns over inflation and strengthened expectations of further interest rate hikes. Higher rates and a stronger yen could put additional pressure on Japanese equities.

Among major decliners, Nintendo fell 4%, Advantest declined 2.8%, Fast Retailing dropped 2.7%, while Mitsubishi UFJ slipped 1.5%.

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