Where the yuan goes against the yen, Japanese stocks go too.
The currency of Asia’s biggest economy slipped Wednesday to the weakest against the region’s No. 2 since October 2014, the month Bank of Japan Governor Haruhiko Kuroda unleashed his second round of quantitative easing. A lower yuan hurts the outlook for Japan’s exporters, which compete against Chinese companies for customers. The Nikkei 225 Stock Average closed 1 percent lower, while the Shanghai Composite Index climbed 1.8 percent at 2:21 p.m. local time.