Japan's Indexes Extended Weekly Losses to Over 5%

Akira Ito
06 Sep, 2024
Tokyo

Stock market indexes in Tokyo declined for the third session in a row, following the rise in the yen and resurfacing of the U.S. economic slowdown.

The Nikkei 225 stock average fell 0.5%, and the broader Topix index dropped 0.9%. 

The yen advanced 0.5% to 142.57 against the U.S. dollar and gained 3% in the week amid rising expectations of a rate hike by the Bank of Japan later in the month. 

Market indexes dropped as much as 6% this week, following a weak U.S. manufacturing growth report, followed by a weaker-than-expected increase in private sector payrolls in August.

Weak manufacturing and labor market data raised fears of a wider economic slowdown for the second time in two months, dragging down benchmark indexes in losses for the first time since early August. 

Closer home, investors reviewed the smaller-than-expected increase in household spending in August. 

Household spending, adjusted for seasonal factors and inflation, rose 1.7% from the previous month in July to 290,931 yen, the Ministry of Internal Affairs and Communication said on Friday. 

On a yearly basis, real household spending rose 0.1% following the contraction of 1.4% in the previous month and increased for the first time since April. 

The average monthly household income increased 5.5% in real terms and, in nominal terms, rose 8.9% to 694,483 yen. 

 

Japan Stock Movers 

The Nikkei 225 stock average decreased 0.5% to 36,474.15, and the Topix index dropped 0.9% to 2,597.94. 

For the week, the Nikkei 225 declined 6.5% and the Topix fell 4.6%.

Financial markets in Hong Kong were closed, and the city and Vietnam closed airports ahead of the arrival of Typhoon Yagi.

Seven & I declined 1.2% to ¥2,139.0, and the company said the acquisition offer from Canada-based Couche Tard undervalues the convenience chain operator. 

Tech stocks were under pressure following weakness in the sector in Thursday's trading on Wall Street. 

Advantest Corp. fell 1.9% to ¥5,835.0, Tokyo Electron decreased 2% to ¥21,965.0, and Screen Holdings increased 0.8% to ¥9,648.0. 

Retailers were in focus after the yen strengthened against the U.S. dollar. 

Aeon Co. increased 2.4% to ¥3,838.0, Isetan Mitsukoshi gained 1.1% to ¥2,211.0, and Fast Retailing added 0.7% to ¥44,330.0. 

Nippon Steel declined 2.2% to ¥3,080.0, IHI Corp fell 0.6% to ¥6,199.0, Kawasaki Heavy Industries dropped 3.3% to ¥4,705.0, and Keyence decreased 3.7% to ¥63,870.0.