Topix Slips From Two-Year High as Yen Gains on Brainard Remarks
- Benchmark climbed to highest since August 2015 on Tuesday
- Yen rises for second day as Brainard comments viewed dovish
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Shares in Tokyo retreated as the yen jumped after Federal Reserve Governor Lael Brainard sounded a note of caution over further U.S. interest-rate increases.
Banks contributed most to the Topix index’s drop as the benchmark gauge retreated from its highest level since August 2015 reached on Tuesday. The yen extended gains against the dollar in Tokyo trading after rising 0.1 percent in New York. Brainard’s dovish comments -- even while signaling comfort on pressing ahead soon with plans to shrink the Fed’s balance sheet -- come ahead of Fed Chair Janet Yellen’s testimony before Congress later Wednesday and amid reports of Russia’s possible involvement in Donald Trump’s presidential election campaign.