A stronger yen cuts the value of overseas income at Japanese companies when converted into their home currency.
Japan Petroleum Exploration Co., Japan’s second-biggest oil driller, lost 1.2 percent to 3,240 yen. JX Holdings Inc, Japan’s largest refiner, fell 1 percent to 491 yen.
Toyota Motor Corp., the world’s biggest automaker, dropped 2 percent. Canon Inc., the world’s No. 1 camera maker, slid 1.2 percent. Tokyo Electron Ltd., which makes electronic components, fell 2 percent. Japan Petroleum Exploration Co., Japan’s second- biggest oil driller, lost 0.9 percent after crude oil decreased yesterday. Seven & I Holdings Co., the operator of the 7-Eleven chain of convenience stores, slumped 3.7 percent after cutting its full-year sales forecast.
The yen strengthened to as much as 82.11 against the dollar at about 10 p.m. yesterday in Tokyo from 82.86 at the 3 p.m. close of stock trading. That’s the strongest level since May 1995 and compares with the 82.88 reached on Sept. 15, the day Japan’s government said it intervened in the foreign-exchange market to weaken the currency for the first time since 2004.
“The macro-economy is improving pretty well,” said Seiichiro Iwamoto, who helps oversee $35 billion in Tokyo at Mizuho Asset Management Co. “The currency market’s stability following the growth in manufacturing is supporting the Japanese stock market.”
The Nikkei 225 jumped 1.8 percent to 10,168.52 at 3 p.m. in Tokyo, the biggest gain since Nov. 18 and the highest close since June 21. The broader Topix index climbed 1.3 percent to 877.21, with more than five shares advancing for each that fell.
Toyota fell 1.2 percent to 2,895 yen. Isuzu Motors Ltd., which gets about 60 percent of its revenue overseas, decreased 2.7 percent to 324 yen. A measure of automakers was the biggest drag on the Topix.
Seven & I sank 3.7 percent to 1,975 yen after first-half net income increased 43 percent from a year earlier to 62.4 billion yen ($758 million). The company cut its full-year sales projection to 5.14 trillion yen from 5.2 trillion yen.
Canon retreated 1.2 percent to 3,830 yen. Tokyo Electron fell 2 percent to 4,575 yen.
The Topix has retreated 3.3 percent this year, compared with gains of 8.2 percent by the Standard & Poor’s 500 Index in the U.S. and 5.2 percent by the Stoxx Europe 600 Index. Shares in the Japanese benchmark are valued at 15.2 times estimated earnings on average, compared with 14.2 times for the S&P 500 and 11.9 times for the Stoxx 600.
Koito Manufacturing Co., a maker of parts for cars and airplanes, plunged 16 percent to 1,047 yen, its biggest drop since March 1992, after the Bangkok Post reported a subsidiary will be sued by Thai Airways International Pcl for $550 million over the late delivery of airplane seats. Koito had the second- sharpest decline on the Topix.
The dollar appreciated to 84.40 yen last night in Tokyo, near the highest level since Sept. 27. A stronger dollar boosts the value of U.S. income at Japanese companies when converted into their home currency.
Among shares that rose, Panasonic Corp., the world’s biggest maker of plasma televisions, climbed 3.4 percent to 1,176 yen. The company announced that it withdrew its registration for a new share sale worth as much as 500 billion yen.
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