Japanese stocks fell as investors looking for safe-haven investments drove the yen higher, damping the outlook for exporters earnings.

The Topix index declined 1.2 percent to 1,419.26 as of 9:09 a.m. in Tokyo, headed for the biggest two-day drop since October. The Nikkei 225 Stock Average lost 1.3 percent to 17,580. The yen traded at 119.41 per dollar after staging its steepest intraday rally since June 2013 yesterday before paring gains to finish 0.8 percent higher.

The yen, regarded as a haven investment along with gold, strengthened as much as 2.2 percent yesterday against the dollar. Gold futures jumped to a six-week high. MSCIs gauge of global equities fell to an almost one-month low yesterday as China tightening lending requirements stoked speculation over a slowdown in Asias biggest economy.

Source : Bloomberg