Nikkei loses another 2% amid strengthening yen
On Thursday, Japanese shares tumbled amind the yen’s surge, while elsewhere in Asia stocks were quite choppy.
Japanese Nikkei Stock Average lost 2,3%. Simultatneously, Australian benchamark S&P/ASX 200 descended 0.9%, while the Shanghai Composite Index stood flat. As for Korean Kospi as well as the Hang Seng Index they shared the same outcome of a 0.1% surge.
Stocks in Japan dived as the Japanese yen extended its revenues against the evergreen buck. On Wednesday, Japan’s currency had strengthened after the country’s prime minister, Shinzo Abe dared to put off a national sales-tax lift, planned on next year, until October 2019.
In general, market participants have rather a downbeat attitude to this delayed tax, as many financial analysts state. The matter is that Japan boasts a high GDP-to-debt ratio. As follows from this, if Japan’s authorities don’t have an opportunity to list this tax rate right now, then they might not be able to cut this debt burden further.