08.09.202600:54:05UTC+00Japanese Shares Struggle as Yen Strengthens

The Nikkei 225 Index rose 0.4% to trade above 66,700 on Tuesday, while the broader Topix Index slipped 0.6% to around 4,100, as Japanese equities traded without a clear direction amid further yen strength to its highest level since February. The firmer yen is pressuring earnings prospects for Japan’s export-oriented sectors and making domestic assets more expensive for overseas investors.

Investors also positioned for a widely expected Bank of Japan interest rate hike, underpinned by robust economic data showing that July wages grew at their fastest pace since 1997 and second-quarter GDP was revised higher. At the same time, elevated oil prices—driven by renewed US-Iran hostilities—kept inflation risks and the outlook for interest rates firmly in focus.

At the stock level, SoftBank Group (+4.1%), Advantest (+1.4%) and Fujikura (+91.1%) logged notable gains, while Taiyo Yuden (-5.4%), Ibiden Co (-2.4%) and Murata Manufacturing (-4.8%) suffered sharp declines.