Stronger yen weighs on Tokyo shares

Japanese share market finished the session down on Tuesday, 07 October 2014, as profit taking across the board after yen appreciated to mid-104 level against greenback. Most of the sectoral blue chips declined, with currency sensitive exporters being major losers. The Nikkei 225 index lost 0.67%, or 107.12 points, to 15783.83, while the broader Topix index of all first-section shares fell 0.43%, or 5.51 points, to 1209.89.

Tokyo share market opened lower and spent most of the day in the negative terrain. The drop came as yen appreciated against the greenback after comments by Japanese Prime Minister Shinzo Abe about the debilitating effects of a weak yen on households and small and mid-sized companies. The greenback fetched 108.48 yen, well down from the day's high of 109.22 yen and 108.75 yen in New York.

Sentiments also hit as the Bank of Japan held off launching new monetary easing measures despite its less-optimistic tone on the economy. The Bank of Japan kept its pledge to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen.

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