Asian Stocks Mixed as Yen Jumps to Highest Level Since Late Last Year
Asian stock markets were mixed Monday after the US and Japan intervened to prop up the value of the Japanese yen against the dollar. The yen surged to its highest level since late last year, reaching as high as 155.20 against the dollar, down from near 164 yen just a week ago.
The strong yen is beneficial for Japanese companies with international operations, as it boosts their profits in yen terms and attracts foreign tourists. However, it also weakens Japan's purchasing power overall, increasing costs for imports of oil and other goods needed to run its economy.
In share trading, Japan's Nikkei 225 index dropped 1.9% to 63,140.68, while the Kospi in South Korea fell 4.5% to 6,298.75. Hong Kong's Hang Seng index gained 0.6%, and Taiwan's Taiex rose 0.7%.
Oil prices plummeted about 5% due to a lull in fighting in the Middle East, with US benchmark crude down 4.8% at $80.58 per barrel and Brent crude at $83.87 per barrel.