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Japan's Nikkei slips from record peak on concerns over BOJ policy, stronger yen
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Japan's Nikkei slips from record peak on concerns over BOJ policy, stronger yen
Aug 13, 2025 7:37 PM

(Recasts paragraph 1, adds comments, updates stock prices)

By Junko Fujita

TOKYO, Aug 14 (Reuters) - Japan's Nikkei share average

slipped on Thursday, pulling back from the record high reached

in the previous session, amid concerns over the Bank of Japan's

(BOJ) potential policy shift and a stronger yen.

The Nikkei fell 1.3% to 42,764.04 as of 0137

GMT.

The index crossed the key 43,000 metric for the first time

on Wednesday, marking six consecutive sessions of gains. That

took its winning run to 9% since the drop on August 4.

"Investors sold stocks as they locked in profits on growing

concerns about the market overheating," said Shuutarou Yasuda, a

market analyst at Tokai Tokyo Intelligence Laboratory.

"Also, the market became cautious that the Bank of Japan may

raise interest rates soon after (U.S. Treasury Secretary Scott)

Bessent interfered with Japan's central bank's policy," he said.

In an interview with Bloomberg Television, Bessent said the

BOJ is going to hike interest rates as it is "behind the curve"

in handling monetary policy.

The comments came as bets that the Federal Reserve will

resume rate cuts next month sent the U.S. dollar to a three-week

low.

A stronger yen typically weighs on exporter shares by

reducing the value of overseas earnings when converted back into

Japanese currency.

The broader Topix lost 1% to 3,060.33 and was set to

snap a six-session winning streak.

Shares of chip-testing equipment maker Advantest ( ADTTF )

lost 0.3% and chip-making equipment maker Tokyo Electron ( TOELF )

fell 1.1%.

Automakers declined, with Toyota Motor ( TM ) and Honda

Motor ( HMC ) losing 1.77% and 0.55%, respectively.

Bucking the sombre mood, technology investor SoftBank Group

rose 2.82%.

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