Nikkei Ends Lower After Rise of JPY

The Nikkei stock index ended at a four-month low Tuesday, quickly giving up earlier gains as the yen’s advance against the U.S. dollar hurt export-related issues.

The 225-issue Nikkei Stock Average ended down 137.94 points, or 0.65 percent, from Friday at 21,244.68, its lowest close since Oct. 13. Japanese financial markets were closed Monday for a national holiday. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 15.19 points, or 0.88 percent, lower at 1,716.78.

Decliners were led by rubber product, transportation equipment and marine transportation issues.

The Nikkei index rose as much as 300 points in the morning after U.S. shares extended their rebound overnight following steep losses last week. In addition, reports over the weekend that Bank of Japan Governor Haruhiko Kuroda will be reappointed led investors to believe that the central bank would continue with monetary easing, analysts said.

The reports “served as a cue for stock buying,” said Shingo Ide, chief equity strategist at the NLI Research Institute.

The 73-year-old Kuroda, expected to remain at the helm until 2023, has set a target of 2 percent inflation and carried out a series of bold monetary easing steps such as increased purchases of government bonds and risky financial assets.

via Mainichi