TOKYO - Stocks in Japan plunged more than two per cent on Friday after reports said Japanese Prime Minister Shizo Abe was set to resign owing to health reasons.
The Nikkei 225 dropped 2.1 per cent, or 486.99 points, to 22,721.87, reversing earlier gains, after local media reported that Mr Abe was set to quit, hours before he was due to speak at a news conference. National broadcaster NHK, without citing a source, said that Mr Abe"intends to resign as his illness has worsened and he worries it will cause trouble" in leading the country.
The yen, considered a safe haven in times of uncertainty, rallied against the US dollar. The currency rose as much as 0.4 per cent against the the dollar to 106.11, rebounding from a loss. “Resignation brings into question support for Abenomics, and of course support for Kuroda’s BOJ ultra-easy policy,” said Rodrigo Catril, senior FX strategist at National Australia Bank in Sydney, who sees the yen at 103 against the dollar by year end.