(Bloomberg) -- The yen advanced and Japanese stocks fell after NHK said Japanese Prime Minister Shinzo Abe plans to resign due to health concerns.

The currency rose as much as 0.4% against the the dollar to 106.11, rebounding from a loss. The Topix stock index erased gains to fall as much as 1.6% while Nikkei 225 dropped as much as 2.7%.

“Resignation brings into question support for Abenomics, and of course support for Kuroda’s BOJ ultra-easy policy,” said Rodrigo Catril, senior FX strategist at National Australia Bank Ltd. in Sydney, who sees the yen at 103 against the dollar by year end.

Futures of Japan’s 10-year government notes dropped as much as 42 ticks to 151.30.

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