Japan's Fast Retailing feels Brexit sting as yen strengthens

Tokyo

BILLIONAIRE Tadashi Yanai's Fast Retailing Co gave an early glimpse of the pain a rising yen is bringing to Japan's biggest companies since the UK voted to leave the European Union last month.

The company's shares jumped 15 per cent, the most since October 2009, after Asia's largest clothing retailer posted third-quarter sales and operating income that beat analyst estimates. Still, Fast Retailing cut its full-year net income forecast by 25 per cent for the year ending August due to an estimated 37 billion yen (S$475.8 million) in foreign exchange loss, it said on Thursday.

The stock rose to as high as 31,770 yen in Tokyo trading on Friday.

Fast Retailing's forecast comes amid concerns that potentially slowing growth in Europe will weigh on Japanese profits and undermine Prime Minister Shinzo …