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Japan's Nikkei falls as yen intervention fears keep investors cautious
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Japan's Nikkei falls as yen intervention fears keep investors cautious
Aug 3, 2026 7:40 PM

TOKYO, Aug 4 (Reuters) - Japan's Nikkei share average

slipped on Tuesday as investors remained wary of further

yen-buying intervention and awaited Toyota Motor's ( TM ) quarterly

results later in the day.

The Nikkei fell 0.11% to 63,684.85 by the midday

recess, while the broader Topix slid 0.26% to 3,949.90.

The Nikkei dropped nearly 1% on Monday after Japan's Finance

Ministry said Tokyo and Washington had conducted coordinated

yen-buying intervention and would not hesitate to take further

action.

"After the currency intervention, dollar/yen moved sharply

in the yen's favour from around 163. Authorities have also

indicated they could intervene again if the yen weakens further,

so caution remains," said Shuutarou Yasuda, a market analyst at

Tokai Tokyo Intelligence Laboratory.

The dollar traded at 157.5 yen, up 0.22%. A stronger

yen reduces the value of overseas revenue for Japan's many

heavyweight exporters.

Japan's AI-linked heavyweights were mixed, with technology

investment conglomerate SoftBank Group losing 4.5%,

while cables and optical fibre manufacturer Fujikura ( FKURF )

surged 5%.

Toyota Motor ( TM ), the world's biggest automaker, is

expected to post a fifth straight quarterly decline in operating

profit, hit by weaker vehicle sales and rising costs.

Investors may also scrutinise Toyota's ( TM ) assumed exchange

rates and related guidance, given the sensitivity of its

earnings to currency swings, said Hiroshi Namioka, chief

strategist at T&D Asset Management.

Overall, market breadth was negative, with 141 decliners in

the Nikkei against 83 gainers and one unchanged.

The largest losers by percentage in the index were meat

processor NH Foods ( NHFOF ), down 8.69%, followed by parcel

delivery and logistics company Yamato Holdings ( YATRF ), which

shed 5.63%, after their earnings disappointed investors.

The largest percentage gainers in the index were cables and

components manufacturer Furukawa Electric ( FUWAF ), up 9.97%,

followed by pharmaceutical company Otsuka Holdings ( OTSKY ),

gaining 7.09%.

(Reporting by Satoshi Sugiyama; Editing by Subhranshu Sahu)

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