Japan's Indexes Extended 2-Day Losses Amid Yen Anxieties

Akira Ito
28 Jan, 2026
Tokyo

The yen anxieties dominated in Tokyo's trading amid dampened earnings growth expectations. 

The Nikkei 225 Stock Average decreased 0.6%, the mainland-focused Topix fell 0.9%, and the yen hovered at 152.60 against the U.S. dollar. 

Over the last four trading sessions, the yen has strengthened 4% against the U.S. dollar amid growing speculation over potential Japan-U.S. joint intervention to prop up the yen. 

The U.S. dollar faced renewed pressure, and the currency extended a 4-day decline to over 2% and fell to a four-year low after the U.S. president brushed aside the recent decline.  

The Trump administration's chaotic trade policy and attacks on the Federal Reserve's independence, and rising odds of a U.S. government partial shutdown as early as this weekend further pressured the U.S. dollar. 

The Bank of Japan's December policy meeting minutes showed that members are ready to raise short-term rates if the outlook for growth and inflation holds. 

Japan's central bank held its short-term rates at 0.75% at its first policy meeting of 2026, as widely anticipated, keeping borrowing costs at their highest levels in three decades and ahead of February's snap election. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.6% to 52,996.56, and the broader Topix Index fell 0.9% to 3,530.0. 

Japan's export-driven stocks led decliners in Tokyo trading, as the firmer yen dampened earnings outlook. 

Sony Group decreased 2.5% to ¥3,401.0, Toyota Motor Corp. declined 2.5% to ¥3,347.0, and Mitsubishi Heavy Industries fell 2.5% to ¥4,418.0. 

Sumitomo Mitsui Financial Group decreased 1.3% to ¥5,360.0, Mitsubishi UFJ Financial Group eased 0.4% to ¥2,758.50, and Mizuho Financial Group added 0.7% to ¥6,625.0.