Shares in Toyota, Panasonic and Japan’s biggest banks were among the biggest victims of a huge rout of Tokyo stocks on Thursday, as investors absorbed the previous day’s unexpected interest rate increase by the Bank of Japan and a renewed surge in the yen. Following the BoJ’s decision to raise its benchmark interest rate to 0.25 per cent — the highest level in 15 years — the yen continued to strengthen against the dollar, reaching ¥148.56 during early Thursday trading.
Many of the hardest-hit companies were carmakers and other manufacturers with earnings that are mechanically boosted by yen weakness. But some of the fiercest selling was directed at Japan’s big property stocks, which have thrived during the country’s long era of ultra-loose monetary policy but now face a different environment. Shares in Mitsui Fudosan and Mitsubishi Estate fell 8 and 9 per cent, respectively.