Japan Nikkei falls on profit taking

Japan stock market finished session in mixed territory on Friday, 17 May 2024, as profit taking resumed on tracking weak lead from Wall Street overnight and as recent strong gains. Meanwhile, selloff pressure also fueled after a survey showed that majority of Japanese companies considers the yens recent weakness a negative factor for their businesses

As per survey report published by Teikoku Databank on Friday, about 64% of firms stated the recent depreciation of the yen has eroded their profits, while 7.7% saw a positive impact. Companies citing adverse impacts said they werent able to pass on rising raw materials costs to customers via price increases.

The 225-issue Nikkei Stock Average index was down 132.88 points, or 0.34%, to finish at 38,787.38. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 8.08 points, 0.3%, to 2,745.62.

CURRENCY NEWS: The Japanese yen was little changed in lower 155 level against greenback on Friday. The dollar fetched 155.73 yen in Asian trade, as against 155.40 in New York on Thursday.

The Japanese currency has fallen around 9.5% this year as the Bank of Japan has kept monetary policy loose while higher U.S. interest rates have drawn money towards U.S. bonds and the dollar.

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