Japanese Equities Rebound on Yen's Reluctant Rise

The recent rally of the yen has sparked a selloff in Japanese equities. However, despite the currency's sharp rise, it remains about five yen shy of ¥151.49 per dollar, which is the weighted-average assumption used by over 800 companies surveyed by the Bank of Japan.

This buffer zone should limit the impact on the earnings of exporters, giving their shares room to rebound as they report results, according to strategists.

The yen's rally has been a major concern for Japanese companies, particularly exporters, due to its potential effect on profit forecasts. However, it appears that the currency has not yet reached a level that would significantly impact earnings.