Nikkei Falls Amid Strengthening Yen and Rising Oil Prices

The Japanese stock market declined on Wednesday as the yen strengthened to its highest level in nearly seven months. The Nikkei 225 index dropped 0.19% to close at 65,143.

The stronger yen has a negative impact on investor sentiment and can reduce earnings outlook for Japan's export-focused companies.

The US Treasury Secretary Scott Bessent warned against betting on further yen weakness, which added to expectations of possible currency intervention by Japanese authorities.

Rising oil prices amid growing tensions in the Middle East increased concerns over inflation and strengthened expectations of further interest rate hikes.