Japan Nikkei falls 1.6%; Exporters dives on stronger yen

Japan share market finished session steep lower on Friday, 02 December 2022, with export-related stocks led retreat after yen appreciated to upper 134 range against greenback.

At closing bell, the 225-issue Nikkei Stock Average index dropped 448.18 points, or 1.59%, to 27,777.90. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 32.48 points, or 1.64%, to 1,953.98.

Total 19 of 33 TSE sectors declined, with Real Estate, Insurance, Electric Power & Gas, Banks, Land Transportation, and Construction issues being notable losers. On the other side, Electric Appliances, Chemicals, and Precision Instruments issues were notable gainers.

Shares of export-oriented companies stumbled as a firm yen erodes companies' profits that have been earned overseas when repatriated. Among export-related issues, Mazda Motor dropped 3.7% to 1,032 yen, while construction equipment maker Komatsu slid 2.3% to 3,075 yen.

Some stocks related to sports and entertainment climbed in Tokyo after Japan's surprise defeat of Spain to advance to the next round of the World Cup in Qatar.

Shares of CyberAgent Inc., which is broadcasting all the games for free in Japan on its Abema streaming service, jumped 4% to 1,288 yen. Sports goods retailer Xebio Holdings climbed 1.2% to 951 yen.

ECONOMIC NEWS: Japan Monetary Base Down 6.4% On Year In November-The monetary base in Japan was down 6.4% on year in November, the Bank of Japan said on Friday - coming in at 616.820 trillion yen. That follows the 6.9% annual contraction in October. Banknotes in Circulation were up 2.9% on year, while coins in circulation fell 3.8%. Current account balances tumbled 8.5% on year, including a 9.7% drop in reserve balances. The seasonally adjusted monetary base was up 17.0% after tumbling 33% in the previous month.

CURRENCY NEWS: The Japanese yen strengthened against the dollar, following Fed Chair Jerome Powell's comments signaling smaller interest rate hikes could come as soon as the next meeting in December. The USD/JPY fell 0.6% in Asia's trading hours and last stood at 134.67.

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