Rising Yen Trims Weekly Gains in Nikkei 225 Average and Topix Index

Akira Ito
13 Sep, 2024
Tokyo

Market indexes in Tokyo fell following the continued rise in the yen after hawkish comments from the Bank of Japan official. 

The Nikkei 225 stock average declined 0.7% and the Topix index dropped 0.8% after the yen rose to this year's high of 140.50 against the U.S. dollar. 

Bank of Japan board member Naoki Tamura said on Thursday that the central bank must lift rates to 1% over the next two years to gradually achieve its target of 2% inflation. 

Tamura's comments pressured Japanese equities and rimmed benchmark indexes' weekly gains to between 2% and 3%. 

Investors welcomed the European Central Bank's 25 basis points rate cut for the second time in three months and hoped that the U.S. Federal Reserve Bank would follow through with a similar rate cut next week. 

 

Japan Stock Movers

The Nikkei 225 stock average decreased 0.7% to 36,570.74, and the broader Topix index declined 0.8% to 2,573.01. 

Tech stocks traded mixed following a rise in the sector in overnight trading in New York. 

Advantest increased 1.3% to ¥6,380.0, Screen Holdings fell 1% to ¥9,857.0, Softbank Group fell 1% to ¥8,417.0, and Tokyo Electron advanced 1.6% to ¥23,645.0.  

Banks were in focus after the yen traded near this year's high amid a hawkish interest rate outlook. 

Mitsubishi UFJ Financial declined 0.6% to ¥1,451.0, Sumitomo Mitsui Financial fell 0.8% to ¥8,982.0, and Mizuho Financial decreased 0.6% to ¥2,813.50. 

Diversified conglomerates declined and extended weekly losses to around 2% after the yen continued to drift higher. 

Marubeni decreased 0.5% to ¥2,234.50, Mitsui % Co. increased 0.2% to ¥2,891.50, Mitsubishi Corp. fell 0.5% to ¥2,834.50, and Itochu Corp. dropped 1.3% to ¥7,325.0.