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Japan's Nikkei ends at 3-month low as yen strengthens
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Japan's Nikkei ends at 3-month low as yen strengthens
Jul 25, 2024 12:16 AM

(Updates at 0600 GMT)

TOKYO, July 25 (Reuters) - Japan's Nikkei share average

ended at a three-month low and posted its biggest daily decline

in three years on Thursday as the yen's gain against major

currencies hurt investor sentiment.

The Nikkei fell 3.28% to end at 37,869.51, its

lowest close since April 25.

The index extended its losing streak to seven, the longest

losing run since October 2021 and posted its biggest daily fall

since June 2021.

The broader Topix slipped 2.98% to 2,709.86.

The yen rose to its strongest level against the dollar in

2-1/2 months and scaled multi-month highs against other

currencies ahead of next week's Bank of Japan (BOJ) meeting.

A stronger yen tends to hurt exporter shares as it decreases

the value of overseas profits in yen terms when firms repatriate

them to Japan.

"The market turned cautious about the yen's gain against the

dollar and other major currencies. That hurt investor

sentiment," said Yugo Tsuboi, chief strategist at Daiwa

Securities.

"And worries about the U.S. economic slowdown seemed to have

sent Wall Street lower overnight," Tsuboi added.

Technology investor SoftBank Group tanked 9.39% to

drag the Nikkei the most. Chip-related shares tracked their U.S>

peers, with Tokyo Electron ( TOELF ) and Advantest ( ADTTF )

declining 4.82% and 6.04%, respectively.

Renesas Electronics ( RNECF ) slumped 13.62% after the chip

maker reported a 29% decline in net profit for six months to

June.

Nissan Motor ( NSANF ) fell 6.98% as the automaker saw

first-quarter profit almost completely wiped out and slashed its

annual outlook.

Food-related shares rose, with beer brewer Sapporo Holdings ( SOOBF )

rising 3.23% to become the top performer on the Nikkei.

Frozen-food maker Nichirei ( NCHEF ) rose 3.13%.

All but three of the Tokyo Stock Exchange's 33 industry

sub-indexes fell. The airline sector inched up 0.57%

to become the top-performing sector.

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