Japan Stocks Rebounded After Service Sector Expanded Seventh Consecutive Month

Akira Ito
22 Aug, 2024
Tokyo

Stocks in Tokyo advanced as investors latest update on private sector activities, and the yen retained its upward bias. 

The Nikkei 225 stock average gained 0.5%, the Topix inched higher by 0.1%, and the yen traded at 145.35 against the U.S. dollar. 

Stocks opened higher in Tokyo after the latest minutes of the meeting from the U.S. Federal Reserve showed policymakers are open to a rate cut at the next meeting if economic data support such a move. 

The dovish minutes supported the broader market sentiment in New York, and positive earnings from leading retailers Target Corp., TJX, and Macy's also contributed to the market's strength. 

Closer to home, Japan's service sector expanded for the seventh month in a row in August, indicating a strong demand for private sector business services, and the manufacturing sector contracted for the sixth month in a row. 

The au Jibun Service Purchasing Managers' Index increased to 54.0 in August from the revised 53.7 in July, and the au Jibun Manufacturing PMI edged higher to 49.5 from a four-month low of 49.1 in July. 

The monthly surveys were released by S&P Global on Thursday. 

 

Japan Stock Movers 

The Nikkei 225 stock average added 0.5% to 38,145.86, and the Topix index rose 0.1% to 2,668.61. 

Technology stocks, financial stocks, retailers, and diversified conglomerates were among the most actively traded stocks on Thursday. 

Advantest, Tokyo Electron, Shin-Etsu Chemical, Lasertec, and SoftBank advanced between 1% and 4%. 

Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial fell between 1% and 2%, but China Bank declined more than 3%. 

Mitsubishi Corp. increased 0.3% to ¥3,027.0, Marubeni decreased 0.3% to ¥2,456.0, and Itochu Corp. jumped 0.5% to ¥7,127.0. 

Mercari jumped 7.5% to ¥2,377.0, IHI Corp. added 5.9% to ¥5,891.0, Chugai Pharmaceutical gained 3.9% to ¥7,114.0, and Sumitomo Pharma jumped 6.7% to ¥652.0.