FX.co ★ Japanese Shares Fall for Second Session

The Nikkei 225 Index edged down 0.2% to fall below the 52,800 mark, while the broader Topix Index decreased by 0.6% to 3,530 on Tuesday. This movement extended losses from the prior session as a strengthening yen continued to exert pressure on the equity markets. The yen has risen almost 3% over the past two sessions amidst concerns about potential joint intervention by Tokyo and Washington to bolster the currency. A stronger yen poses challenges for Japan's export-driven industries and escalates costs for foreign investors acquiring Japanese assets. Export-oriented companies faced significant selling pressure, with Mitsubishi Heavy Industries dropping 1.3%, Toyota Motor slipping 1.1%, Sony Group declining 1.8%, Fujikura falling 1.3%, and Nintendo decreasing 1.3%. Investor sentiment was further affected as campaigning commenced for the lower house snap election, during which Prime Minister Sanae Takaichi experienced a slight decline in approval ratings.