Another Day, Another High In Japan's Nikkei 225 as the Yen Drifts to a New 38-year Low

Akira Ito
10 Jul, 2024
Tokyo

Market indexes in Tokyo advanced to new record highs following the market gains in New York. 

The Nikkei 225 index and the Topix index gained to close at new record highs after the producer price index rose for the 41st month in a row. 

Producer price index increased at an annual pace of 2.9% in June, following the upwardly revised 2.6% gain in the previous month. 

Prices rose at the fastest pace since August 2023 as input costs and import costs continued to climb, and producer inflation was positive for the 41st month in a row. 

The acceleration in inflation supported the case for the Bank of Japan to adjust its benchmark rate higher after the next policy meeting at the end of July. 

The central bank is also scheduled to release its bond purchase tapering plan, which could increase confidence that policymakers are serious about narrowing the yield gap between the U.S. and Japan. 

The yen resumed its upward march and traded at 141.36 against the U.S. dollar amid the persistently wide yield differential between the U.S. and Japanese bonds. 

 

Japan Stock Movers 

The Nikkei 225 stock averages increased by 0.6% to 41,831.99, and the Topix index advanced by 0.5% to 2,909.20. 

Recruit Holdings jumped 3.6% to ¥9,484.0 after the company said it plans to buyback up to 5.7% of its outstanding shares over the next 12 months. 

Tech stocks were among the most active, and Tokyo Electron, Advantest, Disco Corp., and SoftBank hovered around the flatline. 

Tokio Marine jumped 4.8% to ¥6,596.0, MS&AD rose 4.2% to ¥3,930.0, and Mitsubishi Motors jumped 8.6% to ¥493.30. 

GS Yuasa declined 5.9% to ¥2,938.0 and Lasertec Corp. declined 2.6% to ¥33,610.0.