Nikkei withdraws because of the strength of the yen and worries over the currency war

TOKYO (Reuters) – Japan's Nikkei average closed lower on Wednesday, as the strength of the yen and fears of a global currency war drove investors to sell riskier badets, although some of companies and a rise to Wall Street have limited losses.

The Nikkei <.N225> was down 0.33% to 20,516.56.

Export-dependent companies fell as the yen continued to appreciate against the dollar, keeping the Japanese currency at a record high of seven months in the previous session. The yen is generally considered a haven during turbulent market conditions. The Japanese currency strengthened during previous sessions with the sudden escalation of the trade war between the United States and China.

Honda Motor lost 0.9%, Mitsubishi Electric lost 1.3% and TDK lost 2.2%.

Profit reports also continued to have a negative impact on trade.

Sumco Corp., the maker of semiconductor silicon wafers, plunged 9.3% after its operating income fell 18.4% between January and June.

The broader TOPIX index <.TOPX> increased 0.05% to 1,499.93. Falling stocks outperformed gains of 1060 to 1003.

(Reuters)