Japan's Nikkei 225 and Topix Plunged Nearly 2% Ahead of Rate Decisions

Akira Ito
17 Sep, 2024
Tokyo

Benchmark indexes in Tokyo faced selling pressure ahead of the monetary policy decisions by the Bank of Japan on Friday. 

The Nikkei 225 stock average declined as much as 2% and the Topix index fell as much as 1.8%, and losses in tech stocks contributed to the market weakness. 

Investors turned cautious after a three-day holiday and reacted to the weak tech stocks on Wall Street ahead of rate decisions this week by the Federal Reserve Bank, the Bank of England, the Norges Bank, and the Bank of Japan. 

The Bank of Japan is widely anticipated to hold its interest rate range, but investors are looking forward to the central bank's rate outlook and the timing of future rate increases. 

The yield on 10-year Japanese bonds fell to a one-year low of 0.83%, ahead of the central bank's rate decisions. 

The Japanese yen traded at 140.34 against the U.S. dollar in Tokyo as investors turned cautious. 

Investors are also hoping that the Federal Reserve Bank will lower its key lending rates by at least 25 basis points, shrinking the gap with rates in Japan. 

 

Japan Stock Movers 

The Nikkei 225 stock average decreased 1% to 36,180.30, and the Topix index declined 0.7% to 2,554.52. 

Tech stocks led the losers in Tokyo following sharp losses in overnight trading in New York after investors worried that the Apple iPhone 16 sales may lag expectations. 

Tokyo Electron decreased 5.2% to ¥22,440.0, Advantest dropped 5.6% to ¥6,016.0, and Screen Holdings declined 2.9% to ¥9,577.0. 

Retailers were also among the leading decliners after the yen continued to advance. 

Seven & I Holdings declined 0.4% to ¥2,158.50, Isetan Mitsukoshi dropped 3% to ¥2,196.50, and Fast Retailing added 0.4% to ¥44,070.0. 

Banks accelerated losses for the second session in a row ahead of the Bank of Japan's rate decisions on Friday. 

Mizuho Financial Group declined 2.5% to ¥2,746.50, Sumitomo Mitsui decreased 2.6% to ¥8,750.0, and Mitsubishi UFJ dropped 2.2% to ¥1,419.0.