Japanese stocks suffered large losses as the yen soared to an 18-month high against the dollar, a discouraging development for the country’s export-driven economy.

Tokyo’s Nikkei 225 slumped 3.1 percent as Chinese markets were closed for a national holiday. The dollar is trading around 106.53 yen. As reported, a stronger yen risks denting Japanese companies’ profits and tourist arrivals to the country.

Last month, Fast Retailing lamented the effects of the yen’s appreciation and partially blamed the currency’s rise in value for its 55.1 percent plunge in first half net profit. On Monday, its shares slumped 4.3 percent to end at 27,945 yen.

Shiseido plunged 5.1 percent to 2,359 yen. Isetan Mitsukoshi slumped 4.6 percent to 1,130 yen. Matsuya shed 4.6 percent to 834 yen.

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