Nikkei 225 In Tokyo Extends Rally to Fifth Week Ahead of Key Economic Releases

Akira Ito
20 May, 2024
Tokyo

Benchmark indexes in Japan advanced tracking gains in Friday's trading on Wall Street. 

Stocks edged higher in Tokyo in Monday's trading as investors reviewed the rise in energy and metals prices. 

Brent crude oil prices jumped 6 cents to $84.0.2 a barrel after Iran's state-controlled television channel said that President Ebrahim Raisi's helicopter crashed while traveling to East Azerbaijan province and crossing mountainous terrain, foggy weather, and icy conditions. 

Iran's foreign minister and governor of the province, along with bodyguards, are feared to have died in the helicopter crash. 

Closer to home, investors are looking forward to a busy week of economic releases, including international trade, inflation, and business activity updates. 

 

Japan Stock Movers 

Benchmark indexes in Tokyo extended a 4-week rally powered by technology stocks and exporters. 

The yen edged 14-sense higher 155.75 against the U.S. dollar on the worries of persistently wide interest rates between the U.S. and Japanese bonds. 

The Nikkei 225 Stock Average added 1.1% to 39,211.83, and the Topix index gained 0.9% to 2,771.51. 

Automakers were among the leading gainers in Monday's trading, and Tokyo Electron, Advantest, Socionext, and Screen Holdings advanced between 0.5% and 1.2%. 

Banks were also among the most actively traded stocks. 

Mitsubishi UFJ Financial Group added 0.6% to ¥1,563.50, Sumitomo Mitsui advanced 1.2% to ¥9,839.0, and Mizuho Financial gained 2.4% to ¥3,210.0. 

Resource-linked stocks led the gainers in Tokyo trading after copper prices flirted near record highs. 

Inpex, Mitsubishi Materials, and Sumitomo Metal Mining advanced between 3.5% and 5%. 

Shin-Etsu Chemical gained 5.3% to ¥6,152.0 after the chemical company announced stock repurchase plans of 22 million shares not to exceed 100 billion yen before the end of November. 

At the end of April, the company had 1.99 billion outstanding shares, excluding 5.61 million held in the Treasury. 

Revenue in the financial year ending in March 2024 decreased 14% to 2.4 billion yen from 2.8 trillion yen, ordinary income dropped 22.8% to 787.2 billion yen from 1.02 trillion yen, and diluted earnings per share fell to 259.13 yen from 347.87 yen a year ago. 

Sumiseki Holdings Inc. jumped 20.5% to ¥2,354.0, and the stock extended the previous week's gain of 93% after the coal mining company reported its financial results last week. 

Revenue in the financial year 2024 declined 42% to 22.6 billion yen from 39.9 billion yen, ordinary net income soared 117% to 8.1 billion yen from 3.7 billion yen, and diluted earnings per share advanced to 124.94 yen from 59.33 yen a year ago.