Nikkei tumbles as US-Japan joint yen intervention sends currency surging

Japan's Nikkei 225 fell sharply on Monday after Tokyo and Washington confirmed a rare joint currency intervention that sent the yen surging, reversing gains from a strong rally late last week. The benchmark index dropped 2.2% to 62,956.48, while the broader Topix lost 2.8%.klsescreener

The selloff came after Japanese Finance Minister Satsuki Katayama confirmed that Japan and the United States had conducted coordinated yen-buying operations last week — the first such joint intervention in 15 years. U.S. Treasury Secretary Scott Bessent also confirmed the action, stating that "Friday's coordinated foreign exchange actions countered disorderly yen movements".cnbc+2

A Rare Bilateral Move

The intervention was aimed at halting the yen's slide to 40-year lows, with the currency having touched roughly 163.73 per dollar last Thursday before the joint action began. Bank of Japan data indicated Japan may have sold as much as $58.97 billion to buy yen during Thursday's intervention in New York markets, followed by Friday's confirmed joint operation with Washington.reuters+2

President Donald Trump said on Sunday that the U.S. had participated "to support the Japanese currency" as a gesture of friendship and in the interest of global economic stability. Bessent added that the Treasury "will not hesitate to participate in further joint intervention".cnbc+2

By Monday morning in Tokyo, the yen had strengthened as much as 1.4% to 155.20 per dollar, a four-week high, compounding a 3.8% surge over the previous two trading sessions.bangkokpost+1

Market Fallout

The stronger yen weighed broadly on Japanese equities, particularly export-heavy sectors. Transport equipment makers fell the most, losing 5%, with Toyota down 5.3% and Suzuki sliding about 8%. Chip-sector heavyweights Tokyo Electron and Advantest also declined.klsescreener

"The joint currency intervention is the biggest focus for stocks today," said Wataru Akiyama, an equities strategist at Nomura Securities ↘ 1.20%.klsescreener

The Nikkei had jumped more than 4% on Friday, powered by a rally in tech stocks after Microsoft's ↗ 0.52% strong forecasts eased concerns about the industry's AI spending. Monday's drop erased much of those gains, with 212 of the index's 225 components falling. SoftBank Group was among the few gainers, rising 1.2%, while memory chipmaker Kioxia soared about 10% after announcing a share buyback.klsescreener