Automotive stocks hit one-month lows in the Tokyo stock market on the 8th. Toyota Motor Corporation and Honda Motor Co., Ltd. fell sharply as concerns spread that the yen's appreciation would weaken export profitability.
The automotive sector fell approximately 4.7% from the previous day in the Tokyo stock market on the 8th, recording its lowest level in one month among industry sectors. Toyota Motor Corporation fell approximately 4.1%, while Honda Motor Co., Ltd. declined about 5%. The yen's appreciation beyond assumed exchange-rate levels fueled selling, as concerns spread that weaker export profitability would weigh on earnings.
In the foreign-exchange market that day, the yen briefly firmed to around ¥152.89 per dollar, approaching its strongest level against the dollar in six months. This accelerated investor selling amid concerns that the move would pressure the profitability of automakers' exports.
Moves in the yen, which are expected to affect the earnings outlook of Japanese companies, were viewed as a downside factor for export-oriented automakers. Market participants reportedly focused on the prospect of short-term deterioration in profitability as the yen strengthened beyond assumed exchange-rate levels.
Many market participants expect future share-price movements to depend on the yen's trajectory and the outlook for export profitability, while some said that follow-on trading in individual stocks could continue. However, the article provides no additional specific earnings figures or confirmed dates.