Japan Nikkei falls to four-month low on stronger yen

Japan Nikkei falls to four-month low on stronger yen

The U.S. dollar fell to the mid-106 yen level Thursday morning in Tokyo amid worries that rising U.S. Treasury yields will slow down U.S. economic growth.

The 225-issue Nikkei Stock Average gained 280.46 points, or 1.33 percent, from Wednesday to 21,434.63. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 14.06 points, or 0.82%, to finish at 1,702.72.

Local market players also said the yen's appreciation against the USA dollar further zapped market sentiment in later trade and sent exporter issues, which have a wide bearing on the broader market, lower.

A strong yen does the opposite for Japanese export-related firms. Transportation equipment, marine transportation and nonferrous metal-linked issues comprised those that declined the most by the close of play.

After trading in the upper 106 yen range through much of the morning, the dollar faced further selling as the rise in U.S. Treasury yields raised concerns that higher borrowing costs would hurt economic growth in the United States.