Nikkei extends losses on resurgent yen, disappointment over stimulus
TOKYO Aug 3 (Reuters) - The Nikkei share average extended losses on Wednesday as the yen pushed higher against a backdrop of disappointment with Japan's latest fiscal and monetary stimulus measures.
The Nikkei was down 1.7 percent after shedding more than 2 percent in early afternoon trade, plumbing its lowest intraday level since July 12.
It had finished the morning session 0.9 percent lower.
The broader Topix shed 1.7 percent, while the JPX-Nikkei Index 400 was down 2.1 percent.
The dollar was up 0.1 percent on the day at 101.02 yen , down from earlier session highs. It fell as low as 100.75 yen, not far from a 3-week trough of 100.680 hit overnight.
Prime Minister Shinzo Abe's cabinet on Tuesday approved 13.5 trillion yen ($133.39 billion) in fiscal measures, but markets were disappointed it did not include more direct government spending which could give an immediate boost to economic growth.
The International Monetary Fund urged Tokyo to do more, and coordinate fiscal stimulus with further central bank measures that could include rate cuts and more asset purchases.
Last Friday, the Bank of Japan disappointed investors hoping for radical stimulus. While it increased purchases of exchange-traded funds to 6 trillion yen, some strategists and investors concluded that the central bank is running out of options.
($1 = 101.2100 yen) (By Tokyo markets team; Editing by Kim Coghill)
© Thomson Reuters 2016 All rights reserved.