Global Market: Japan's Nikkei slips as intervention fears weigh; Toyota earnings in focus

Japan's Nikkei share average edged lower on Tuesday as investors remained cautious over the possibility of further yen-buying intervention by Japanese authorities and awaited quarterly earnings from Toyota Motor later in the day, Reuters reported.

The benchmark Nikkei slipped 0.11% to 63,684.85 by the midday break, while the broader Topix index declined 0.26% to 3,949.90.

Investor sentiment remained subdued after the Nikkei fell nearly 1% on Monday following confirmation from Japan's Finance Ministry that Tokyo and Washington had carried out coordinated intervention to support the yen. According to Reuters, authorities also signaled they were prepared to intervene again if the Japanese currency came under renewed pressure.


The dollar was last trading at 157.5 yen, up 0.22% on the day. A stronger yen tends to weigh on Japanese exporters by reducing the value of overseas earnings when repatriated.

Among AI-related stocks, performance was mixed. Technology investment giant SoftBank Group fell 4.5%, while optical fibre and cable maker Fujikura gained 5%.

Market participants also turned their attention to Toyota Motor, with Reuters reporting that the world's largest automaker is expected to post a fifth consecutive quarterly decline in operating profit due to weaker vehicle sales and rising costs.

Investors are also likely to examine Toyota's foreign exchange assumptions and earnings guidance, given the significant impact currency fluctuations have on the company's profitability, Reuters reported, citing market strategists.

Market breadth remained weak, with 141 stocks declining on the Nikkei against 83 gainers, while one stock was unchanged.

Among the biggest losers, NH Foods slumped 8.69%, while logistics company Yamato Holdings dropped 5.63% after both companies reported earnings that disappointed investors.

On the gaining side, Furukawa Electric surged 9.97%, making it the top performer on the Nikkei, followed by pharmaceutical company Otsuka Holdings, which advanced 7.09%.