Japan's Nikkei average dives 3% as pro investors sell shares

TOKYO -- Japan's stock market rally has slowed since mid-July, and in early trade Thursday, the benchmark Nikkei Stock Averagewas down 3%, as professional investors turn their attention to the adverse impact of the weak yen. 

The yen's slide versus the dollar helped fuel the rally in Japanese stocks last year and into 2024, with the weak currency lifting exporter earnings and attracting foreign investors. But the tide may be turning, as more investors become concerned that the yen's weakness could do more harm than good for consumers and smaller companies.