TOKYO – The Tokyo Stock Exchange recorded on Monday its biggest fall in 15 months, weighed down by large losses on Wall Street last week and the strengthening of the yen against the dollar.
The Nikkei index fell 592.45 points or 2.55 percent to close at 22,682.08 while another major index, the Topix, fell 40.46 points or 2.17 percent to stand at 1,823.74.
The Tokyo Stock Exchange opened for the day with a clear, downward trend, falling more than 2 percent during the morning after ending last week with losses and after the Dow Jones Industrial Average in New York capped its worst week in almost two years.
The Nikkei registered on Monday its steepest decline since November 2016 and closed at its lowest level since Dec. 15 with the attention of investors on Wall Street and concern caused by the rise in the 10-year Treasury yield, which could mean an increase in inflation.
“Concerns grew about the acceleration of US inflation and a slowdown in its economic growth,” Yutaka Miura, senior technical analyst at Mizuho Securities Co., told Japanese news agency Kyodo.
The foreign exchange market has also worsened the mood of investors, amid the strengthening of the yen against the dollar, which stood at 109 yen at the close of trading.
A stronger yen hurts Japanese exporters, making them lose competitiveness and reducing profits when they are repatriated.