Japan to cut jobs, close factories as yen weakens

Japanese stocks closed lower as a weaker yen weighed on exports.

The Nikkei 225 index fell more than 1% to 4,918.60.

The yen weakened sharply on Monday as traders reacted to the news of the planned layoffs in a bid to reduce the impact of a weaker-than-expected outlook for economic growth.

The Nikkeidons initial move to sell yen bonds and short-term foreign exchange futures to drive up prices of the precious metal rose to their highest level since mid-September.

Japan is struggling to contain a surging dollar as it struggles to avoid deflation, which is an economic slowdown in consumption due to a drop in prices of goods.

The currency has been in a freefall for weeks, down more than 5% against the dollar in the last two months.

Its main trading partner China has cut tariffs and moved to limit imports of Japanese goods.