The Bank of Japan chose to keep its monetary easing policies unchanged on Thursday, causing the yen to surge in value and Tokyo stocks to tumble.
The Nikkei 225 slumped 3.1 percent to end the day at 15,434. Other Asian indices also suffered during the session. Hong Kong’s Hang Seng slid 2.1 percent to 20,038 while Shanghai’s SSE shed 0.5 percent to end at 2,873.
The yen, which has appreciated significantly since the beginning of June, soared to fresh highs on Thursday. It is currently trading at 104 to the dollar. A strong yen is highly detrimental to Japan’s export-driven economy and it is starting to dent tourist spending in the country as well.
It was a disappointing day for retail stocks.
Fast Retailing slumped 3.5 percent to end at 27,260 yen. Shiseido lost 2.8 percent to finish at 2,686 yen. Isetan Mitsukoshi shed 3.4 percent to 959 yen. Prada lost 3.1 percent to 25.05 Hong Kong dollars.