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Friday, 21st August 2009
In Business In Japan,

Japan stocks fall on strong yen

Shares on the Japanese stock exchange fell today (August 21st), after the yen emerged as a strong currency in trading.

The Nikkei average dropped by 145.21 points - 1.4 per cent - with market analysts blaming the dip on the fact that a stronger yen could reduce exporter's profits.

Overall, the Nikkei dropped by 3.4 per cent for the week as a whole.

Yutaka Miura, senior strategist at Securities Co, said: "The main negative factor was a rising yen, which prompted investors to sell export-linked shares," reported Forbes.

As well as the strong yen, the possibility that the US cash-for-clunkers scheme may be scrapped is also thought to have contributed to the market's sharp drop.

There are concerns that the ending of the initiative, which sees people given vouchers towards a new car if they trade in an old vehicle, could impact on the selling levels of cars in the US.

Written by Graham McPherson.