Nikkei hit by strong Yen, suffers biggest drop in a month

TokyoUpdated: Jun 14, 2016, 02:34 AM IST

Employees of Tokyo Stock Exchange work at the bourse after the New Year opening ceremony at the Tokyo Stock Exchange (TSE), held to wish for the success of Japan's stock market, in Tokyo, Japan, January 4, 2016. REUTERS/Yuya Shino/Files Photograph:(Reuters)

Japanese stocks suffered their biggest daily percentage drop in a month today hit by a stronger Yen, while global concerns such as the upcoming Brexit vote and worries about Japan's fiscal policies sapped risk appetite.

The Nikkei share average fell 2.3 per cent to 16,562.55, the biggest daily drop since May 2.

The already pressured dollar sank further against the yen after Bank of Japan board member Takehiro Sato reiterated his view that the BOJ should consider its 2 per cent inflation target as a long-term goal with room for flexibility, rather than one with a rigid deadline.

That meant the BOJ should modify its current massive asset buying programme, which was intended to be a short-term move aimed at shocking the public out of its deflationary mindset.

The broader Topix declined 2.2 per cent to 1,331.81 and the JPX-Nikkei Index 400 fell 2.3 per cent to 12,004.95.