Nikkei In Tokyo Edged Lower Ahead of GDP Report, Mitsui Fudosan and Kubota In Focus

Akira Ito
13 May, 2024
Tokyo

Benchmark indexes in Tokyo eased, and investors turned cautious ahead of the GDP report later in the week. 

Market indexes reversed gains from the previous session as investors looked forward to the release of the first quarter economic growth update later in the week. 

Investors are estimating first-quarter seasonally adjusted GDP growth to decrease by 0.2% from the previous quarter, primarily because of production disruptions in January and February. 

The Nikkei 225 Stock Average decreased 0.2% to 38,152.90, and the Topix index dropped 0.2% to 2,722.22. 

The yen hovered above 155 against the U.S. dollar as currency traders digested a summary of the Bank of Japan's policy meeting minutes held in April. 

The Bank of Japan's suspected two-day intervention last week lifted the battered yen from a low of 160 to 153, but the persistent weakness in the yen likely to bring the currency closer to 160. 

The wide gap between the U.S. and Japan is likely to keep downward pressure on the yen as the U.S. Federal Reserve is likely to keep the fed funds rate range between 5.25% and 5.5% longer than previously estimated. 

Tech stocks were among the leading decliners in Monday's trading. 

Tokyo Electron and Advantest rose about 0.5%, but Disco Corp., Socionext, and Screen Holdings decreased between 0.5% and 1.2%. 

Mitsui Fudosan declined 6.5% to ¥1,482.0 after the real estate company reported weaker-than-expected quarterly results. 

Kubota Corp. dropped 5.3% to ¥2,353.50 after the farm equipment maker's earnings met investors expectations. 

Revenue in the first quarter declined 0.8% to 775.2 billion yen, net income rose 5.3% to 79.2 billion yen, and diluted earnings per share advanced to 62.06 yen from 58.11 yen a year ago.