Japanese Stocks Decline After Yen Strengthens, US Shares Falter
- Smaller moves in Japanese shares may signal calmer market
- Nikkei’s volatility pulls back from highest level since 2008
The Nikkei’s rally over the past two days has helped cool implied volatility, which hit its highest level since 2008 at the start of the week.
Photographer: Noriko Hayashi/BloombergThis article is for subscribers only.
Japanese stocks fell, halting a two-day rally, as a stronger yen and a rapid retreat in US shares damped demand for riskier assets.
The Nikkei 225 Stock Average dropped 0.7% at the close in Tokyo, while the Topix slid 1.1%. Technology firms including Hitachi Ltd. weighed on the market after the Nasdaq 100 declined more than 1%. Exporters also took a hit after the yen strengthened 0.4% against the dollar, taking its advance this month to 2.7%.