Market Update
Japan Indexes Edged Higher Amid Rate Path Uncertainties and Ahead of Government Budget
Akira Ito
26 Dec, 2024
Tokyo
Stock market indexes in Tokyo advanced for the second session in a row amid interest rate uncertainties and elevated geopolitical tensions.
The Nikkei 225 stock average gained 0.9%, and the broader TOPIX index advanced 1.1%, as investors debated future rate paths in the months ahead.
The Japanese yen drifted to 157.44 against the U.S. dollar.
Japan has engaged in unusual and aggressive diplomatic efforts in wooing the incoming U.S. presidential administration, as Prime Minister Shigeru Ishiba's administration looks to ramp up defense spending and provide additional economic stimulus.
The LDP-led coalition government made a number of concessions to opposition parties in passing new legislation, raising hopes that the government will provide additional stimulus to low-income and senior citizens.
Moreover, Japan's government is also looking to ramp up its defense spending amid rising threats from the rapidly modernizing and aggressive Chinese military.
Financial markets in Europe, Australia, and Hong Kong are closed for a holiday on Thursday, and December 30th is the last trading day for Japanese markets.
Bank of Japan Governor Kazuo Ueda said in a speech that Japan's economy is moving closer to achieving sustainable 2% inflation but failed to clarify the central bank's stance ahead of the next policy meeting in January.
The Bank of Japan is likely to hold rates at its next meeting, awaiting spring wage negotiations and clarity on the trade policy of the incoming U.S. presidential election in early February.
Japan Stock Movers
The Nikkei 225 Stock Average rose 0.9% to 39,499.14, and the broader TOPIX index advanced 1.1% to 39,499.14.
Tech stocks advanced in Tokyo following gains in New York in Tuesday's trading.
Tokyo Electron increased 0.6% to ¥23,830.0, Advantest Corp. increased 1.2% to ¥9,095.0, and Screen Holdings decreased 0.2% to ¥9,397.0.
Financial stocks traded mixed after the yen drifted lower as investors dialed down rate-increase expectations at the next policy meeting in January.
Sumitomo Mitsui Financial Group advanced 1.2% to ¥3,742.0, Mizuho Financial Group gained 0.9% to ¥3,863.0, and Mitsubishi UFJ Financial Group increased 0.6% to ¥1,811.0.
Toyota Motor jumped 6% to ¥3,142.0, Honda Motor added 3.8% to ¥1,500.0, Nissan Motor increased 6.6% to ¥552.40, and Mitsubishi Motor advanced 6.5% to ¥562.90.
Toyota Motor said it plans to increase its return on equity to 20% by 2030.
Japan Airlines declined 0.3% to ¥562.90 after the company confirmed a cyberattack early this morning disrupting its internal and external systems.
The company said the attack started at 7:24 a.m. Tokyo time, forcing the airline to temporarily disable its network router, leading to system malfunctions and suspension of its ticketing system.
Fast Retailing advanced 0.3% to ¥53,250.0, Isetan Mitsukoshi jumped 7.6% to ¥2,711.50, and Seven & I Holding Co. Ltd. decreased 0.5% to ¥2,452.50.
J. Front Retailing soared 8.3% to ¥2,159.0 after the department store chain operator reported strong quarterly results in the nine-month period ending in September.
Consolidated gross sales for the nine-month period increased 10.3% to 315.9 billion yen, pre-tax profit soared 65.4% to 49.4 million yen, and basis earnings per share inched higher to 143.04 yen from 142.84 yen.
Japan Indexes Edged Higher Amid Rate Path Uncertainties and Ahead of Governme
Akira Ito
26 Dec, 2024
Tokyo
Stock market indexes in Tokyo advanced for the second session in a row amid interest rate uncertainties and elevated geopolitical tensions.
The Nikkei 225 stock average gained 0.9%, and the broader TOPIX index advanced 1.1%, as investors debated future rate paths in the months ahead.
The Japanese yen drifted to 157.44 against the U.S. dollar.
Japan has engaged in unusual and aggressive diplomatic efforts in wooing the incoming U.S. presidential administration, as Prime Minister Shigeru Ishiba's administration looks to ramp up defense spending and provide additional economic stimulus.
The LDP-led coalition government made a number of concessions to opposition parties in passing new legislation, raising hopes that the government will provide additional stimulus to low-income and senior citizens.
Moreover, Japan's government is also looking to ramp up its defense spending amid rising threats from the rapidly modernizing and aggressive Chinese military.
Financial markets in Europe, Australia, and Hong Kong are closed for a holiday on Thursday, and December 30th is the last trading day for Japanese markets.
Bank of Japan Governor Kazuo Ueda said in a speech that Japan's economy is moving closer to achieving sustainable 2% inflation but failed to clarify the central bank's stance ahead of the next policy meeting in January.
The Bank of Japan is likely to hold rates at its next meeting, awaiting spring wage negotiations and clarity on the trade policy of the incoming U.S. presidential election in early February.
Japan Stock Movers
The Nikkei 225 Stock Average rose 0.9% to 39,499.14, and the broader TOPIX index advanced 1.1% to 39,499.14.
Tech stocks advanced in Tokyo following gains in New York in Tuesday's trading.
Tokyo Electron increased 0.6% to ¥23,830.0, Advantest Corp. increased 1.2% to ¥9,095.0, and Screen Holdings decreased 0.2% to ¥9,397.0.
Financial stocks traded mixed after the yen drifted lower as investors dialed down rate-increase expectations at the next policy meeting in January.
Sumitomo Mitsui Financial Group advanced 1.2% to ¥3,742.0, Mizuho Financial Group gained 0.9% to ¥3,863.0, and Mitsubishi UFJ Financial Group increased 0.6% to ¥1,811.0.
Toyota Motor jumped 6% to ¥3,142.0, Honda Motor added 3.8% to ¥1,500.0, Nissan Motor increased 6.6% to ¥552.40, and Mitsubishi Motor advanced 6.5% to ¥562.90.
Toyota Motor said it plans to increase its return on equity to 20% by 2030.
Japan Airlines declined 0.3% to ¥562.90 after the company confirmed a cyberattack early this morning disrupting its internal and external systems.
The company said the attack started at 7:24 a.m. Tokyo time, forcing the airline to temporarily disable its network router, leading to system malfunctions and suspension of its ticketing system.
Fast Retailing advanced 0.3% to ¥53,250.0, Isetan Mitsukoshi jumped 7.6% to ¥2,711.50, and Seven & I Holding Co. Ltd. decreased 0.5% to ¥2,452.50.
J. Front Retailing soared 8.3% to ¥2,159.0 after the department store chain operator reported strong quarterly results in the nine-month period ending in September.
Consolidated gross sales for the nine-month period increased 10.3% to 315.9 billion yen, pre-tax profit soared 65.4% to 49.4 million yen, and basis earnings per share inched higher to 143.04 yen from 142.84 yen.
India Movers: BPCL, Indian Oil, Ola Electric, Max India, NALCO, NTPC Green, Ramkay Infrastructure, Walchand Nagar Industries
Arun Goswami
26 Dec, 2024
Mumbai
Stock market indexes lacked direction and momentum in thin trading as investors reviewed portfolios ahead of the close of the calendar year.
The Sensex index decreased by 0.1% to 78,412.81, and the Nifty index rose by 0.01% to 23,742.75.
On the Mumbai stock exchange, 128 stocks traded at their 52-week highs, and 51 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.80%, and the Indian rupee eased to 85.28 against the U.S. dollar.
Indian Oil Corporation decreased 0.2% to ₹137.92, and the company said it plans to invest ₹61,000 crore to build a naphtha cracker project in Paradip, Odisha.
Ola Electric Mobility Ltd. gained 1.4% to ₹95.36 after the company claimed its distribution network of stores has increased to 4,000 from 800 last month.
Walchand Nagar Industries Ltd. rose 1% to ₹262.25 after the company received an order worth ₹45 crore from Flourine Korea Ltd.
Max India Ltd. declined 1.2% to ₹276.40 after the diversified real estate and insurance company sold three floors in Max Towers located in Noida, Uttar Pradesh, for a total consideration of ₹105 crore.
Bharat Petroleum Corporation advanced 0.7% to ₹294.25, and the company was deemed as the lowest bidder for NTPC's 150 MW solar power project.
Ramkay Infrastructure Ltd. increased 2.9% to ₹621.15 after the company received an order worth ₹215 crore from Hyderabad Metropolitan Water Supply & Sewage Board.
NALCO increased 2.2% to ₹218.15, and the company signed a coal mining agreement for two blocks in Odisha with the ministry of coal, increasing its annual coal production to 4 million or 40 lakh tons.
NTPC Green Energy declined 4.8% to ₹126.70 after the one-month lock-up period for shareholders expired following the company's initial public offering.
India Movers: BPCL, Indian Oil, Ola Electric, Max India, NALCO, NTPC Green, Ramkay Infrastructure, Walchand Nagar Industries
Arun Goswami
26 Dec, 2024
Mumbai
Stock market indexes lacked direction and momentum in thin trading as investors reviewed portfolios ahead of the close of the calendar year.
The Sensex index decreased by 0.1% to 78,412.81, and the Nifty index rose by 0.01% to 23,742.75.
On the Mumbai stock exchange, 128 stocks traded at their 52-week highs, and 51 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.80%, and the Indian rupee eased to 85.28 against the U.S. dollar.
Indian Oil Corporation decreased 0.2% to ₹137.92, and the company said it plans to invest ₹61,000 crore to build a naphtha cracker project in Paradip, Odisha.
Ola Electric Mobility Ltd. gained 1.4% to ₹95.36 after the company claimed its distribution network of stores has increased to 4,000 from 800 last month.
Walchand Nagar Industries Ltd. rose 1% to ₹262.25 after the company received an order worth ₹45 crore from Flourine Korea Ltd.
Max India Ltd. declined 1.2% to ₹276.40 after the diversified real estate and insurance company sold three floors in Max Towers located in Noida, Uttar Pradesh, for a total consideration of ₹105 crore.
Bharat Petroleum Corporation advanced 0.7% to ₹294.25, and the company was deemed as the lowest bidder for NTPC's 150 MW solar power project.
Ramkay Infrastructure Ltd. increased 2.9% to ₹621.15 after the company received an order worth ₹215 crore from Hyderabad Metropolitan Water Supply & Sewage Board.
NALCO increased 2.2% to ₹218.15, and the company signed a coal mining agreement for two blocks in Odisha with the ministry of coal, increasing its annual coal production to 4 million or 40 lakh tons.
NTPC Green Energy declined 4.8% to ₹126.70 after the one-month lock-up period for shareholders expired following the company's initial public offering.
AI, Post-Election Euphoria, and Rate Expectations Underpin Wall Street Rally
Barry Adams
24 Dec, 2024
New York City
Stock market indexes retained an upward bias on Wall Street in a holiday-shortened week as investors reflect on solid gains in 2024.
The S&P 500 index gained 0.2%, and the Nasdaq Composite advanced 0.3% in early trading amid continued rallies in tech and semiconductor stocks.
In Monday's trading, the S&P 500 index gained 0.7%, the Nasdaq Composite advanced 1.0%, and market indexes rebounded from a 2% loss in the previous week.
Benchmark indexes accelerated gains after the post-election results, driven in large part by the hopes of looser regulations and an easier business climate for large businesses in the energy, financial services, and tech sectors.
However, investors are worried that higher tariffs on imported goods, especially from China, are going to contribute to inflationary forces, forcing the Federal Reserve to slow interest rate cuts in 2025.
Investors are also overlooking the policy uncertainties of the incoming presidential administration, and key cabinet appointments are failing to inspire confidence, and top-tier and experienced professionals are avoiding joining the new administration.
Investors are hoping that the Federal Reserve will deliver on its revised 50 basis points rate-cut estimate in 2025, but policymakers left the door open for a rate pivot if inflationary forces remain elevated.
Consumer price inflation has slowed from its peak at 9.1% in June 2022, but prices are still rising from a higher base, forcing consumers to watch spending and curtail discretionary spending.
For the year so far, as of Monday's close, the S&P 500 index has gained 26%, the Nasdaq Composite advanced 33.9%, and the Russell 2000 index increased 11.1%.
President Donald Trump's second administration is going to be just as chaotic as the first one, and government shutdowns are more likely, and staff turnover is expected to remain near record high.
Trump stressed several times, while campaigning for his first and second candidacy, that he will eradicate the entire federal government debt by the end of his eight years in office.
Despite Trump's campaign promises and extreme rhetoric, federal government debt is expected to surge to over $44 trillion, an increase of $8 trillion over the four years of administration, matching his record for the first time in the office.
Consumer price inflation has slowed from its peak at 9.1% in June 2022, but prices are still rising from a higher base, forcing consumers to watch spending and curtail discretionary spending.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,985.50, the Nasdaq Composite rose 0.4% to 19,845.81, and the Russell 2000 index decreased by 0.2% to 2,237.44.
The yield on 2-year Treasury notes edged higher to 4.36%, 10-year Treasury notes inched up to 4.61%, and 30-year Treasury bonds increased to 4.80%.
WTI crude oil increased $0.58 to $69.62 a barrel, and natural gas prices edged up 7 cents to $3.72 a thermal unit.
Gold decreased by $2.74 to $2,612.55 an ounce, and silver fell by $0.10 to $29.57.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.06 to 108.14 and traded at a two-year high.
U.S. Stock Movers
American Airlines Group declined 0.7% to $17.12 after the Federal Aviation Administration confirmed that the carrier grounded all U.S. flights because of a technical glitch on one of the busiest travel days of the year.
The airline lifted the halt around 8:00 a.m. ET, and about 26 flights were canceled across the nation, but more than a thousand flights were affected, scheduled to depart after 6:00 a.m. ET.
AI, Post-Election Euphoria, and Rate Expectations Underpin Wall Street Market Rally
Barry Adams
24 Dec, 2024
New York City
Stock market indexes retained an upward bias on Wall Street in a holiday-shortened week as investors reflect on solid gains in 2024.
The S&P 500 index gained 0.2%, and the Nasdaq Composite advanced 0.3% in early trading amid continued rallies in tech and semiconductor stocks.
In Monday's trading, the S&P 500 index gained 0.7%, the Nasdaq Composite advanced 1.0%, and market indexes rebounded from a 2% loss in the previous week.
Benchmark indexes accelerated gains after the post-election results, driven in large part by the hopes of looser regulations and an easier business climate for large businesses in the energy, financial services, and tech sectors.
However, investors are worried that higher tariffs on imported goods, especially from China, are going to contribute to inflationary forces, forcing the Federal Reserve to slow interest rate cuts in 2025.
Investors are also overlooking the policy uncertainties of the incoming presidential administration, and key cabinet appointments are failing to inspire confidence, and top-tier and experienced professionals are avoiding joining the new administration.
Investors are hoping that the Federal Reserve will deliver on its revised 50 basis points rate-cut estimate in 2025, but policymakers left the door open for a rate pivot if inflationary forces remain elevated.
Consumer price inflation has slowed from its peak at 9.1% in June 2022, but prices are still rising from a higher base, forcing consumers to watch spending and curtail discretionary spending.
For the year so far, as of Monday's close, the S&P 500 index has gained 26%, the Nasdaq Composite advanced 33.9%, and the Russell 2000 index increased 11.1%.
President Donald Trump's second administration is going to be just as chaotic as the first one, and government shutdowns are more likely, and staff turnover is expected to remain near record high.
Trump stressed several times, while campaigning for his first and second candidacy, that he will eradicate the entire federal government debt by the end of his eight years in office.
Despite Trump's campaign promises and extreme rhetoric, federal government debt is expected to surge to over $44 trillion, an increase of $8 trillion over the four years of administration, matching his record for the first time in the office.
Consumer price inflation has slowed from its peak at 9.1% in June 2022, but prices are still rising from a higher base, forcing consumers to watch spending and curtail discretionary spending.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,985.50, the Nasdaq Composite rose 0.4% to 19,845.81, and the Russell 2000 index decreased by 0.2% to 2,237.44.
The yield on 2-year Treasury notes edged higher to 4.36%, 10-year Treasury notes inched up to 4.61%, and 30-year Treasury bonds increased to 4.80%.
WTI crude oil increased $0.58 to $69.62 a barrel, and natural gas prices edged up 7 cents to $3.72 a thermal unit.
Gold decreased by $2.74 to $2,612.55 an ounce, and silver fell by $0.10 to $29.57.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.06 to 108.14 and traded at a two-year high.
U.S. Stock Movers
American Airlines Group declined 0.7% to $17.12 after the Federal Aviation Administration confirmed that the carrier grounded all U.S. flights because of a technical glitch on one of the busiest travel days of the year.
The airline lifted the halt around 8:00 a.m. ET, and about 26 flights were canceled across the nation, but more than a thousand flights were affected, scheduled to depart after 6:00 a.m. ET.