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Markets

Weak yen turns from boon to bane for Japanese stocks

Japan's share in global exports has halved since 1998 as production moves offshore

High-value-added exports like cars tend not to decline in price when the yen weakens. (Photo by Yukihiro Takefuta)

TOKYO -- When the yen weakens, the stock market rallies. This long-held rule of thumb no longer applies as Japan is not the export powerhouse it once was.

The Nikkei Stock Average recorded its third-steepest drop this year on Monday even as the yen sank to a 24-year low against the dollar, underscoring the shrinking role of exports to Japan's economy.

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