Japan’s Nikkei 225 posted record highs on Monday as the yen continued to weaken.
The currency eased to 161.7 per dollar, just short of 161.96. A break beyond this mark would leave the yen at its weakest in nearly four decades and increase pressure on Tokyo to respond.
Japan’s Nikkei Over 72,000
The Nikkei 225 closed at a record 72,353.96 on Monday, up 1.55% after hitting 72,831 intraday. The Topix rose 1.24% to 4,095.05.
The advance added ¥25.74 trillion ($156 billion) to the market value, according to analyzing the Bull Theory. The conference spread to Asian countries, and South Korea KOSPI rose 0.7% and China’s SSE Composite Index rose 1.78%.
The development followed a series of constructive US-Iran talks in Switzerland, where technical talks will continue this week. Mediators Qatar and Pakistan confirmed progress, despite US President Donald Trump threats of war.
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Yen Nears 40-Year Low
While stocks are rising, Japanese money is going elsewhere. The yen weakened to 161.7 per dollar, and a move above 161.96 would have seen it hit its lowest level since 1986.
The decline continues despite Tokyo’s efforts to stop it. Japan spent ¥11.73 trillion ($73.4 billion) to support the yen through the end of May.
Separately, data kept by the Ministry of Finance showed that foreign direct investment fell by $75.6 billion from April to the end of May. The decline is in line with Japan’s recent move to hedge funds.
Bank of Japan has also strengthened the policyraising its benchmark rate to 1% from 0.75%, the highest since 1995. Higher rates usually support currencies, but the yen’s the weakness has continued regardless.
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A note Japan’s Nikkei Hits Record High as Yen Slides Toward Its 1986 Low appeared for the first time BeInCrypto.
