JGB Yield Hold Above 1% and the Yen Retains Downward Pressure

Akira Ito
27 May, 2024
Tokyo

Benchmark indexes in Tokyo advanced and pared losses in the previous session as investors reacted to the latest comments from Bank of Japan Governor Kazuo Ueda. 

The Nikkei 225 and the Topix indexes advanced after Governor Ueda said investors should exercise caution in estimating higher interest rates because it is "challenging" to accurately predict neutral interest rates in Japan. 

His comments were directed at curbing the recent enthusiasm about possible rate increases later in the year and arresting the decline in the Japanese yen. 

The yen edged slightly higher to 156.80 against the U.S. dollar in late afternoon trading in Tokyo. 

The yield on a 10-year Japanese government bond inched higher to 1.02%, a twelve-year high, after investors reacted to comments from BOJ Governor Ueda. 

Investors are looking ahead to the release of retail sales, industrial production, the unemployment rate, and housing starts data later in the week. 

In stock trading, tech stocks and shipping companies led the gainers, but financial services, automakers, and industrial companies traded mixed. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average rose 0.5% to 38,837.44, and the Topix index advanced 0.7% to 2,760.35. 

Renesas Electronics, Socionext, Disco Corp.,  Tokyo Electron, and Advantest gained between 1% and 3%. 

Shipping lines were among the leading gainers in Tokyo trading. 

Nippon Yusen advanced 3.2% to ¥5,059.0, Mitsui OSK added 2.1% to ¥5,184.0, and Kawasaki Kisen added 4% to ¥2,418.0. 

Toyota Motor advanced 1.7% to ¥3,450.0, Honda Motor gained 0.6% to ¥1,745.0, Nissan Motor increased 1.2% to ¥559.20, and Mitsubishi Motor added 1% to ¥430.0. 

Nexon dropped 3.5% to ¥2,466.0, CyberAgent dropped 4.2% to ¥965.80, and Hoya Corp. decreased 1.4% to ¥18,225.0.