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Nikkei hits 16-mth low, lack of action on yen weighs

TOKYO, Aug 25 (Reuters) - Japan’s Nikkei average hit a 16-month closing low on Wednesday, at one point falling more than 2 percent, as disappointment spread over the lack of Japanese policy action to rein in the strong yen, which threatens a fragile economic recovery.

Hopes for action by the government and the Bank of Japan on the yen, which rose to a 15-year high on Tuesday, had provided some early support after the Nikkei business daily reported that Japan’s Ministry of Finance may consider unilateral yen-selling market intervention if speculators drive up the yen. [ID:nN24264334] [ID:nTOE65T00N]

The benchmark Nikkei .N225 shed 1.7 percent or 149.75 points to 8,845.39, its lowest close since late April 2009, after at one point falling as low as 8,807.41. The broader Topix .TOPX lost 1.3 percent to 807.31. (Reporting by Elaine Lies; Editing by Joseph Radford)

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