Stocks In Japan Swing Higher Tracking Gains On Wall Street

Akira Ito
20 Aug, 2024
Tokyo

Stock market indexes in Tokyo rebounded from the losses in the previous session, tracking gains in tech stocks in overnight trading in New York. 

The Nikkei 225 stock average jumped 1.8%, and the broader Topix index gained 1.2%. 

Market gains were supported by the slight weakness in the Japanese yen, but uncertainty loomed that the stronger yen could lead to unwinding of yen carry trade. 

The yen traded at 147.21 against the U.S. dollar, and the currency held steady for the third session in a row after soaring earlier in the month to a high not seen since January. 

Investors also looked forward to the release of inflation data on Friday, and economists anticipate overall consumer inflation and core inflation to stay above 2.5%. 

Gold in international trading stayed above $2.500 an ounce amid rising demand from Chinese retail buyers as investors shift investment away from residential property to precious metals. 

Moreover, the People's Bank of China is expected to continue diversifying its foreign exchange reserves away from the U.S. government bonds to precious metals, including gold. 

Brent crude oil prices traded down 2% to $77 a barrel in the hopes that a wider conflict between Iran and Israel could be avoided as diplomats worked to prevent Middle East conflict from escalating. 

Moreover, prices were under pressure on the worries of demand growth in China amid a protracted residential property market slump and weak consumer confidence. 

As widely anticipated, the People's Bank of China held steady its one-year loan prime rate at 3.35% and five-year loan prime rate at 3.85%, after cutting rates in the last month. 

 

Japan Stock Movers 

The Nikkei 225 stock average advanced 1.8% to 38,062.92, and the Topix index rose 1.2% to 2,672.10. 

Tech stocks led the gainers in Tokyo, tracking gains in overnight trading on Wall Street. 

Softbank, Advantest, Tokyo Electron, Lasertec, and Disco Corp. advanced between 2% and 3%. 

Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho Financial edged down between 0.1% and 0.4%. 

Toyota Motor jumped 1% to ¥2,687.0, Honda Motor added 0.7% to ¥1,578.0, and Nissan Motor gained 2.5% to ¥447.80. 

Canon Inc. gained 2.6% to ¥4,828.0, Panasonic Holdings Corp. added 1.4% to ¥1,159.50, and Mitsubishi Electric Corp. increased 1% to ¥2,390.0. 

Marubeni Corp. advanced 0.4% to ¥2,480.0, Itochu Corp. increased 0.4% to ¥7,169.0, and Mitsubishi Corp. declined 0.03% to ¥3,024.0.