Tokyo Indexes Eased 1% Following Muti-year High Surge In the Last Week

Akira Ito
19 Aug, 2024
Tokyo

Stocks in Tokyo succumbed to profit-taking after a sharp rebound of nearly 8% in the previous week. 

The Nikkei index decreased 1.6% and the Topix dropped 1.7% after market sentiment recovered last week from wild swings earlier in the month. 

Last week, investor sentiment rebounded after worries about the possible economic slowdown eased and the Bank of Japan deputy governor's comments calmed market nerves. 

Uchida Shinichi commented that the central bank will refrain from raising rates when markets are not stable. 

The yen rebounded 2% to 145.23 against the U.S. dollar after machinery orders rose from the previous week in June. 

Japan's machinery orders, which exclude large but infrequent orders from shipping and power companies, rose 2.1% from the previous month in June, the Cabinet Office reported Monday. 

Orders rebounded from a decrease of 3.2% in May, largely because of the rise in orders from the non-manufacturing sector. 

On an annual basis, private-sector machinery orders unexpectedly declined 1.7% after surging 10.7% in May. 

 

Japan Stock Movers 

The Nikkei 224 Stock Average decreased 1.6% to 37,440.86, and the Topix index dropped 1.3% to 2,643.42. 

Tech stocks and banks were among the leading decliners in Monday's trading. Tokyo Electron, Advantest, Screen Holdings, and GS Yuasa fell between 1% and 3%. 

Sumitomo Mitsui Financial, Mitsubishi UFJ Financial, and Mizuho Financial declined between 1% and 2%. 

Automakers also fell after investors took profit in leading industrial companies. 

Toyota Motor decreased 3% to ¥2,660.50, Honda Motor fell 1.1% to ¥1,567.50, Nissan Motor declined 1.4% to ¥437.0, and Mitsubishi Motor eased 1.4% to ¥404.20.