Yen Intervention Boosts Asian Stocks Amid Lull in Middle East Fighting

Asian stocks were mixed on Monday after the US and Japan confirmed they had intervened to prop up the value of the Japanese yen against the US dollar. The dollar fell to around 155.20 yen, down from its recent high near 164 yen. This move helped boost the profits of Japanese companies with big operations overseas, increasing their value in yen terms.

However, a weak yen also makes imports more expensive for Japan, pushing up costs for oil and other essential goods. The US Treasury bought yen through the Federal Reserve Bank of New York to help boost its value, while Japan spent over 8 trillion yen on intervention.

The move is seen as a strong signal that Washington is willing to work with Tokyo to defend the yen's value. Stephen Innes of SPI Asset Management said it was 'a strong signal, that Washington is no longer merely giving Tokyo permission to defend the yen. It is prepared to stand on the same side of the trade.'

In share trading, Japan's Nikkei 225 index lost 1.1% to 63,652.26, while the Kospi in South Korea dropped 5.2% to 6,252.49.