Japan's Nikkei falls on yen's gain, Seven & i surges

Recruit Holdings

19/08/2024 07:55

(Updates at 0600 GMT)
       TOKYO, Aug 19 (Reuters) - Japan's Nikkei share average
fell on Monday, extending losses as the yen strengthened against
the dollar, while retailer Seven & i holdings surged 23% as it
received a takeover bid.
    The Nikkei index  .N225  closed 1.77% lower at 37,388.62,
snapping a five-day winning run that pushed up the index 8.7%
last week.
    "The Nikkei was expected to fall this week after its sharp
rally, but the yen's gain against the dollar during the session
pushed that move faster," said Fumio Matsumoto, chief strategist
at Okasan Securities.
    "Today's move suggests that the market will remain volatile
for a while." 
    The U.S. dollar declined broadly and slipped sharply against
the yen in particular as investors bet on a dovish tone emerging
in the Federal Reserve's July policy meeting minutes and Chair
Jerome Powell's upcoming speech at Jackson Hole.  FRX/ 
    Chip-making equipment maker Tokyo Electron  8035.T  slipped
3.11% to drag the Nikkei the most. Robot maker Fanuc  6954.T 
fell 3.23%.
    Bucking the trend, Seven & I holdings  3382.T  surged 23% to
a daily limit high as the company, which operates the 7-Eleven
convenience store chain in the country, said it received a
preliminary takeover offer from Canada's Alimentation
Couche-Tard  ATD.TO .
    Seven & i has formed a special committee to review the
proposal but no decision has been made by either the committee
or board of directors, it added.
    Of the 225 Nikkei components, 191 stocks fell and 22 rose,
with one trading flat. 
    The broader Topix  .TOPX  fell 1.4% to 2,641.14, with Toyota
Motor  7203.T  falling 3.06%.
    

 (Reporting by Junko Fujita; Editing by Christian Schmollinger
and Janane Venkatraman)
 ((junko.fujita@thomsonreuters.com;))