Nikkei 225 Held Steady as Yen Weakness Lifts Exporters

The Nikkei 225 index opened at 66,405.56 on August 31, matching its previous close and holding steady within a narrow range it has maintained for several sessions.

The yen's weakness is driving the market, as a softer currency makes Japanese exports more competitive abroad and boosts the yen-denominated earnings of major manufacturers and shippers in the country.

This trend benefits Japan's exporters, but also raises the likelihood that the Bank of Japan will move to tighten monetary policy again. Any signal from the central bank on this front would reverse the currency tailwind currently enjoyed by these companies.