Japan Indexes Edged Higher After Service Growth Accelerated and Manufacturing Contracted In September

Akira Ito
24 Sep, 2024
Tokyo

Benchmark indexes in Tokyo edged higher after investors returned from a three-day holiday and reviewed the latest policy comments from the Bank of Japan Governor. 

The Nikkei 225 stock average and the Topix index gained at least 0.5% in active trading after China announced wide-ranging stimulus measures ahead of the holiday week. 

Bank of Japan Governor Kazuo Ueda said that the central bank's policy committee needs time to reassess the economic developments and market moves before adjusting policy measures. 

Market participants interpreted brief comments as a sign that the central bank is not in a hurry to raise interest rates. 

In addition, investors reviewed the latest updates on manufacturing and service sector activities. 

The service sector activities accelerated for the third month in a row and reached a five-month high, and the manufacturing sector contracted for the seventh month in 2024. 

The au Jibun Bank Japan Services PMI increased to 53.9 in September from the final 53.7 in August, S&P Global reported in its latest update released on Tuesday. 

The au Jibun Bank Japan Manufacturing PMI eased to 49.6 in September from 49.8 in August, S&P Global said in a separate report released Tuesday. 

The Japanese yen weakened to 144.37 against the U.S. dollar, and the yield on the Japanese government bond edged lower to 0.81%. 

 

Japan Stock Movers 

The Nikkei 225 Stock Averages increased 0.6% to 37,940.59, and the broader Topix index gained 0.5% to 2,656.73. 

Tech stocks traded volatile and struggled to advance despite the gains in the sector in overnight trading in New York. 

Tokyo Electron, Advantest, Screen Holdings, and Disco Corp. traded in a tight range. 

Kawasaki Heavy Industries increased 2.9% to ¥5,568.0, Mitsubishi Heavy Industries jumped 4.3% to ¥1,986.50, and Hitachi Ltd jumped 5% to ¥3,856.0. 

Seven & I Holdings decreased 0.4% to ¥2,139.0, Isetan Mitsukoshi advanced 2.6% to ¥2,203.50, and Fast Retailing added 0.3% to ¥47,930.0.