Japan’s Nikkei 225 led losses in Asia on Friday, snapping a three-day winning streak and plunging over 2% after hitting a record high in the previous session.
The index dumped 1,033.34 points, or 2.5%, to 41,190.68.
Early Friday, the yen suddenly strengthened against the dollar after the U.S. inflation data release, prompting analysts and traders to suspect a possible intervention from the country’s ministry of finance.
The yen traded at 158.55 against the U.S. dollar at roughly 12 a.m. Tokyo time after trading around 161.52 late Thursday.
The currency weakened again on Friday and was last at 159.21 against the U.S. dollar.
On Friday, Japan’s top currency diplomat Masato Kanda said that authorities would take action as needed in the foreign exchange market.
Reuters also reported that Kanda said recent yen moves were somewhat rapid, but declined to comment on whether authorities had intervened in the currency.
In Hong Kong, the Hang Seng index gained 461.05 points, or 2.6%, to 18,293.38.
Losses were also seen in Taiwan, as heavyweights Taiwan Semiconductor Manufacturing Company dropped 3% and Foxconn — traded as Hon Hai Precision Industry — fell more than 4%.
CHINA
In Shanghai, the CSI 300 advanced 4.23 points, or 0.1%, to 3,472.40.
The news comes as China’s exports beat expectations, climbing 8.6% year on year in June as compared to the 8% rise forecast in a Reuters poll of economists. This was also higher than the 7.6% rise seen in May. However, imports slipped 2.3% compared to June last year, compared with expectations of a 2.8% rise.
China’s dollar-denominated trade surplus widened to $99.05 billion, higher than $82.62 billion in May and beating estimates of $85 billion.
In other markets
In Singapore, the Straits Times Index progressed 22.72 points, or 0.7%, to 3,497.78.
In Korea, the Kospi index subtracted 34.35 points, or 1.2%, to 2,857.
In Taiwan, the Taiex index erased 47.31 points, or 1.9%, to 23,916.93.
In New Zealand, the NZX 50 hiked 76.68 points, or 0.6%, to 12,134.97.
In Australia, the ASX 200 took on 69.64 points, or 0.9%, to 7,959.28.
