The Nikkei 225 Index retreated over 1.52% on Monday as investors reacted to several events, including the Japanese yen rescue and upcoming corporate earnings. It dropped to 63,390, down 12.9% from its peak this year. The headline highlights catalysts for the index this week.

The Nikkei 225 and Topix indices fell as the yen gained steam. The USD/JPY fell to 155.25, its lowest since May 6 and 5.35% from its high this year, slipping for three consecutive days after US intervention. The Federal Reserve swapped billions of euros to yen, and the BoJ spent 50 billion in currency interventions last week.

A stronger yen benefits large importers but hurts exporters like Toyota and Honda, making their products more expensive. The BoJ may hike rates later this year, with odds of an October increase rising to 48%, helping bridge the gap with the US.

The index will also react to corporate earnings: Mitsubishi UFJ Financial, Mitsubishi, Marubeni, Toyota Motor, Mitsui, Mitsubishi Heavy Industries, Daikin, Nintendo, NTT, Softbank, Recruit, Japan Post, and major US firms such as AMD, Palantir, Caterpillar, San Disk, Western Digital, and Eli Lilly. Additional drivers include BoJ minutes, macro data, US payrolls, and US-Iran tensions that pushed crude oil prices down.