Stocks in Tokyo fell Thursday, snapping a five-day winning streak, as a volatile dollar had investors taking profits in exporters and other yen-sensitive shares.
The Nikkei 225 slid 144.84 points, or 0.9%, to 16,792.48, after rising more than 10% over the previous five sessions.
In Hong Kong, the Hang Seng index dropped 46.31 points, or 0.2%, to 23,649.31
Most of the gains in Tokyo came on the back of the Bank of Japan’s move to further ease policy and a shift by the country’s massive government pension fund into an equity-heavy asset portfolio—both of which were unveiled Friday.
The market fell even with the U.S. dollar touching a seven-year high against the yen. It traded as high as ¥115.50 during Asia trade. By the close of trading, however, the dollar was at ¥114.31, down from ¥114.75 late Wednesday in New York.
Toyota Motor Corp. edged higher by 0.1%, after the auto maker said it expects a record profit this fiscal year, buoyed by a weaker yen and strong sales in the U.S.
Elsewhere in Asia, stocks finished mixed.
South Korea’s Kospi gained, as shares of the country’s exporters recovered. Kia Motors Corp. was up 6.9% and Hyundai Motor Co. was up 5.0%.
The U.S. dollar hit its highest level this year against the South Korean currency, touching 1,097.18 won.
There is a strong correlation between the South Korean won and the yen.
Analysts say this is due to the South Korean central bank’s intervention policy to keep its currency relatively weaker than that of trade rival Japan. A weaker won against the yen gives a pricing advantage to Korean exporters over their Japanese counterparts.
In other markets;
Shanghai’s CSI 300 index eked up 2.62 points, or 0.1%, to 2,506.07
Singapore’s Straits Times Index inched up 3.30 points, or 0.1%, to 3,290.96
The Taiex index in Taiwan fell 71.58 points, or 0.8%, to 8,891.02
Korea’s Kospi index moved higher 5.05 points, or 0.3%, to 1,936.48
New Zealand’s Exchange 50 poked up 1.46 points to 5,403.61
Australia’s S&P/ASX 200 faded 11.77 points, or 0.2%, to 5,506.11
