Nikkei drops to five-month low on stronger yen

Headline equities of the Japanese market fell steeply, weighing the benchmark Nikkei 225 index down by 335.14 points to closed at 14738.38, a five-month low, while the Topix index of all first-section shares slipped 2.30%, or 28.17 points, to 1,195.50. The risk aversion selloff triggered as the yen appreciated against the dollar fueled by fears about the global economy and the Ebola epidemic.

Investors rushed into relatively safe assets such as the Japanese currency amid renewed worries about global economic growth, dragging the dollar down to Y105.19 overnight, its lowest since Sept. 8. At the close of Thursday trade, the dollar was at Y106.28, up from Y105.90 late Wednesday in New York. A weaker dollar is generally bad for exporter shares, as they have less room to cut prices on goods they sell overseas and can't buy as much yen with the profits they send back home.

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