The Nikkei 225 Index slipped 0.19% to finish at 65,143 on Wednesday, reversing earlier gains as the yen strengthened to its highest level in nearly seven months. The currency move followed comments from US Treasury Secretary Scott Bessent, who cautioned traders against betting on further yen weakness and said he has “pretty good insight” into the Bank of Japan’s actions when it intervenes in the foreign-exchange market.
The firmer yen weighed on the earnings outlook for Japan’s export-oriented companies and made Japanese assets more expensive for overseas investors. At the same time, oil prices extended their advance amid escalating tensions in the Middle East, stoking inflation concerns and reinforcing expectations for further interest rate hikes.
Major decliners included Advantest (-2.8%), Mitsubishi UFJ (-1.5%), Nintendo (-4.0%) and Fast Retailing (-2.7%).
