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![There was no stopping the Nikkei from its significant drop on Tuesday as investors sold stocks in favor of gold and government bonds [Xinhua]](http://thebricspost.com/wp-content/uploads/2016/02/241422149_8-e1455020085825.jpg)
There was no stopping the Nikkei from its significant drop on Tuesday as investors sold stocks in favor of gold and government bonds [Xinhua]
While most Asisn markets are closed for the Chinese New Year, Japan’s markets were roiling after the dollar fell to 114 yen, the lowest level in 14 months, before sliding back to 115.39 at the time of close.
A stronger yen means Japanese exports will now be more expensive to global consumers.
The Nikkei at press time on Tuesday was down 5.40 per cent to 16,085.
This comes in sharp contrast to last week when the dollar gained two per cent on the yen following the Bank of Japan cutting interest rates to negative 0.1 per cent on some deposits.
Fears over flight from the European banking sectors pushed investors in Tokyo to sell dollars and buy yen, or fleeing to buy gold, seen as a safer investment.
Gold prices on Monday soared 3.5 per cent to close at $1,197.90 a troy ounce, the highest in seven months.
Investors are offloading stocks and seeking more stable assets or safe havens – low risk territory.
On Tuesday, they rushed to buy government bonds pushing the yield into negative territory for the first time.
The BRICS Post with inputs from Agencies
