Asia markets finished mixed on Wednesday, with Japanese shares selling off amid a relatively stronger yen.
The yen climbed as high as 100.23 against the dollar on Wednesday morning, after easing to levels near 100.91 on Tuesday afternoon Asia time. As of 3:35 p.m. HK/SIN, the yen traded at 100.71.
"A top heavy tone for the dollar/yen may continue to prevail, given little discretionary resilience being attached to the dollar, while the potential for investor nervousness may continue to lurk in the background," said Emmanuel Ng from Singapore's OCBC Bank in a morning note.
The relatively stronger yen sent export stocks in Japan lower, with automakers Toyota closing down 2.36, Nissan off 2.58 percent and Honda down 1.82 percent. Among other exporters, Sony fell 0.30 percent and Mitsubishi Electric was down 1.58 percent. Sharp bucked the downward trend to trade up 1.54 percent.
A stronger yen is a negative for exporters as it eats into their overseas profits when converted into local currency.
Earlier this week, BOJ Governor, Haruhiko Kuroda, told business leaders in Osaka that the central bank was prepared to use every policy tool available to achieve its 2 percent inflation target, which included cutting the deposit rate further into negative territory.
Negative interest rates affect the profit margins of banks.