BANGKOK (AP) — Asian shares were mixed Monday after the U.S. and Japan confirmed they had acted to prop up the value of the Japanese yen against the U.S. dollar, causing the yen to rise to its highest level since late last year. Oil prices fell sharply after U.S. President Donald Trump said he would order U.S. forces to refrain from attacks against Iran, claiming a deal to end the fighting in the Middle East was close. The dollar fell as low as 155.20 against the yen after Trump and Japanese officials confirmed they had intervened last week to curb the U.S. currency’s rise to 40-year highs against the yen. Last week it was trading near 164 yen. A weak yen helps to boost the profits of Japanese companies with big operations overseas, increasing their value in yen terms. It also has drawn foreign tourists who have enjoyed their strong purchasing power in Japan.
But a cheap currency also weakens Japan’s purchasing power overall, pushing up costs for the imports of oil and other goods needed to run its economy. The euro rose to $1.1533 from $1.1528.In share trading, Japan’s Nikkei 225 index lost 1.9% to 63,140.68 early Monday, while the Kospi in South Korea dropped 4.5% to 6,298.75. The Kospi soared 17.9% on Friday for its best day in history after losing even more of its value earlier in the week. The index is dominated by two tech giants, Samsung Electronics and SK Hynix, both of whose shares gained more than 25% on Friday. However, early Monday Samsung was trading 8% lower while SK Hynix had fallen 7.8%.
