When Japanese yen become strong why their index go down?

Good question! Two reasons: 1. Many of the biggest companies on the Tokyo Stock Exchange are big exporters, like Toyota or Sony. When the yen strengthens, the money they earn from exports shrinks, and so their stock price goes down. read more

Good question! Two reasons: 1. Many of the biggest companies on the Tokyo Stock Exchange are big exporters, like Toyota or Sony. When the yen strengthens, the money they earn from exports shrinks, and so their stock price goes down. read more

Japanese importers, however, are happy because the Yen can now buy more than in the past of foreign goods and services due to the strong currency. The reason for the strong Yen over the last few years relates to the fact that the global economy has not been strong, so safe heaven currencies like the US Dollar, the Yen and the Swiss Frank (Until the Central Bank intervened) have been in high demand. read more

Chinese net purchases of Japanese debt have increased to 1.7 trillion Yen in the first six months of 2010, up from 255 billion Yen in the whole of 2005. Other investors are seeking a temporary parking place for their money when they sell their other assets. read more