Japanese stocks fell Thursday as the yen reached a seven-week high against the dollar. They closed out 2010 with losses with the benchmark Nikkei 225 Stock Average dropping 3 per cent.
The Nikkei dipped 115.62 points, or 1.12 per cent, during the final trading day of the year to close at 10,228.92. The broader Topix index was down 9.21 points, or 1.01 per cent, at 898.8.
All 33 industries listed on the Tokyo market dropped, but the biggest losers of the day were exporters.
A stronger yen makes their goods less competitive abroad and erodes their overseas earnings when they are repatriated.
The rapid rise in the yen would continue to weigh on Japanese stocks in the New Year, analysts warned.
Thursday's drop was the biggest of the month and ended the year on a down note as the Nikkei dropped 3 per cent and the Topix 1 per cent. The losses compared with gains in 2009 of 19 per cent in the Nikkei and 5.6 per cent in the Topix.
For the week, the Nikkei dropped 0.5 per cent and the Topix 0.3
per cent.
On currency markets at 8am SA time, the dollar traded at 81.45-48 yen, down from Wednesday's 5 pm quote of 82.05-07 yen.
The euro traded at 1.3234-37 dollars, up from 1.3140-42 dollars late Wednesday, and at 107.79-82 yen, down from 107.82-86
yen. - Sapa-dpa