The coordinated yen-buying intervention remains the dominant theme for Japanese equities, with exporters facing renewed pressure from a stronger yen even as markets stay alert to the prospect of further official action if the currency weakens again. The sharp move in dollar/yen from around 163 underscores how forceful the intervention was, and continued caution suggests investors are pricing in the possibility of repeated action rather than a one-off move. In Korea, the divergence between Kospi and Kosdaq is notable: broader index weakness tied to AI spending concerns contrasts with a heavy institutional bid in smaller-cap names, with the buy-side-only curb triggering for a third consecutive session pointing to persistent momentum-driven flows in that segment. Softer than expected Korean inflation offered some support but was not enough to offset the AI spending overhang on the main board.---Earlier:Japan's Kiuchi declines to name FX level, watching impact closelyJapan media (Kyodo) reporting that Toyota plans to temporarily trim back operations at its Tahara plant between August 17 and 31Japanese stocks stayed cautious on yen intervention risk while Korea saw a split session, with Kospi wobbling and Kosdaq surging on heavy institutional buying.Summary:Japan's Nikkei fell 0.11% by the midday recess and the Topix slid 0.26%, as investors remained wary of further yen-buying intervention and awaited Toyota's quarterly results.The Nikkei had dropped nearly 1% on Monday after Japan's Finance Ministry confirmed coordinated yen-buying intervention with Washington and signalled readiness for further action if needed.The dollar traded at 157.70 yen, with dollar/yen having moved sharply in the yen's favour from around 163 following the intervention.Toyota Motor is expected to post a fifth straight quarterly decline in operating profit, hit by weaker vehicle sales and rising costs, with Japan's AI-linked heavyweights trading mixed and overall market breadth negative.South Korea's Kospi opened up around 1.5% before slipping into negative territory intraday, as concerns over AI-related spending outweighed support from July inflation data that slowed more than expected.The Kosdaq surged more than 5%, with the Korea Exchange activating a buy-side-only trading curb, pausing programmatic trading, driven by heavy institutional demand with net buying of KRW 354 billion, marking the third consecutive day the curb has been triggered.Japanese and South Korean equities diverged sharply on Tuesday, with Tokyo shares staying on the back foot amid lingering fears of further yen-buying intervention, while Seoul's market split between a wobbly Kospi and a surging Kosdaq driven by heavy institutional buying.Japan's Nikkei share average fell 0.11% by the midday recess, with the broader Topix sliding 0.26%, as investors remained cautious ahead of Toyota Motor's quarterly results due later in the day. The move follows a sharper decline on Monday, when the Nikkei dropped nearly 1% after Japan's Finance Ministry confirmed that Tokyo and Washington had conducted coordinated yen-buying intervention, adding that authorities would not hesitate to act again if needed. Market analysts noted that dollar/yen had moved sharply in the yen's favour from around 163 following the intervention, with continued signals of readiness for further action keeping investors on edge. The dollar was last trading at 157.70 yen. A stronger yen weighs on the earnings outlook for Japan's export-heavy blue chips by reducing the value of their overseas revenue when converted back into local currency.Against that backdrop, Toyota Motor, the world's largest automaker, is expected to report a fifth consecutive quarterly decline in operating profit, weighed down by softer vehicle sales and rising costs. Japan's AI-linked heavyweight stocks traded mixed, and overall market breadth on the Nikkei was negative, reflecting the broader cautious tone across the session.In Seoul, the Kospi had a volatile session, opening up almost 1.5% at 6,351 before slipping as much as 0.26% lower to 6,241 at one stage ahead of midday. The pullback came as concerns over AI-related spending outweighed support from data showing July inflation slowed more than expected, a combination that left the benchmark index struggling to hold its early gains.The Kosdaq told a very different story, surging more than 5% during the session. The Korea Exchange activated a buy-side-only trading curb, which pauses programmatic trading, at 10:47:51 local time, as heavy institutional demand drove the rally, with institutions recording net buying of KRW 354 billion. Notably, this marked the third consecutive trading day the buy-side curb has been triggered, following activations last month and again in the prior session, underscoring a sustained pattern of concentrated buying pressure in Korea's smaller-cap index even as the broader Kospi struggled for direction. This article was written by Eamonn Sheridan at investinglive.com.