The Japanese Nikkei ends at more than 2 weeks low when Yen wins after Trump Fed’s Cook Fed Fed Fed

The Japanese Nikkei part average ended on Tuesday at a low point of more than two weeks, when the Yen strengthened after the US President Donald Trump had fired a Federal Reserve governor.

The Nikkei broke a winning run with two sessions, dropped 0.97% to 42,394.4, the lowest close since 8 August.

The wider Topix dropped 1.08% to 3,071.99.

“The market was surprised with the news about Cook and responded accordingly,” says Shutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

“Investors from the previous session also calmed down, in which optimism about the policy of the Federal Reserve that is increasing. We will have to wait for more data until the FED policy decision.”

Wall Street -shares ended lower at night when investors dissected the outlook of the American interest rates and this week looked ahead to the quarterly profit of AI chip maker Nvidia. The yen rose earlier in the session to 146.99 to the dollar after Trump took the unprecedented action to remove the Governor of the Federal Reserve Lisa Cook from her position in the FED board of directors. A stronger yen usually weighs on the shares of the exporters by reducing the value of overseas income when they are converted back into Japanese currency. Toyota Motor and Honda Engine fell 1.41% and 1.71% respectively.

UNIQLO owner Fast Retailing lost 1.44% and technology -investor Softbank Group fell by 0.91%.

Chip-related heavyweights advant test and Tokyo Electron gave up early losses to end 0.23% and 0.1% higher respectively.

Investors, who were too late to overtake the newest rally of the Nikkei, seemed to have bought shares on dips, which limit the falls, Yasuda said.

All 33 industrial subindexes of Tokyo Stock Exchange fell except one, with the drug makers lost 2.42% to become the worst performer.