Nikkei 225 In Japan Extended Weekly Rise to 4%, Tokyo Inflation Slowed In September

Akira Ito
27 Sep, 2024
Tokyo

Japan's stock market indexes overcame morning doldrums to close at a two-week high on Friday and extended their weekly advance. 

The Nikkei 225 stock average edged up 1%, and the broader Topix index gained 0.2%, following the gains in overnight trading in New York. 

For the week, the Nikkei 225 advanced 4.5% and the Topix gained 3.4%. 

Market sentiment was positive after the release of better-than-expected U.S. jobless claims, durable goods orders, and second quarter GDP growth data. 

Moreover, investors boosted their holdings of semiconductors and related stocks after Micron Technology estimated higher revenue and profit in the current quarter. 

Closer to home, investors also reviewed the latest update on Tokyo-area inflation data. 

Overall consumer price inflation in September slowed to 2.2% from 2.6% in August, the Bank of Japan said in a release Friday. 

Core inflation, which only excludes volatile food prices but not energy, slowed to 2.0% from 2.4%, halting a 4-month acceleration in price increases. 

The latest inflation matched the target rate set by the Bank of Japan, driven by a fall in energy prices and slowing food price inflation. 

Tokyo's inflation is widely considered a harbinger of the nationwide price trend, and Japan's inflation data generally follow about three weeks later. 

Earlier in the week, policymakers at the central bank noted the need to sharpen focus on inflation and favored a gradual approach to increasing inflation, according to the minutes of the previous policy meeting. 

The yen weakened to 146.27 against the yen and fell to a three-week low as investors reviewed the latest inflation update in the Tokyo area. 

Elsewhere in Asia, China's leaders released a statement pledging more fiscal support after an emergency meeting chaired by President Xi Jinping. 

The latest statement to approve more government spending boosted market sentiment and lifted market indexes in Hong Kong and mainland China to a gain of over 13% in the week and over 20% from the lows reached two months ago. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 1.4% to 39,472.0, and the broader Topix index added 0.2% to 2,726.53. 

Tech stocks led the gainers in Tokyo trading and extended weekly gains over 10%. 

Tokyo Electron gained 6.5% to ¥27,170.0, Lastertec Corporation jumped 7.7% to ¥26,130.0, and Advantest Corp. increased 3.8% to ¥7,143.0. 

Mitsubishi UFJ Financial decreased 0.7% to¥1,447.50, Sumitomo Mitsui Financial declined 1.5% to ¥2,957.50, and Mizuho Financial fell 0.8% to ¥2,814.50. 

Seven & I Holdings added 0.4% to ¥2,214.0, Isetan Mitsukoshi rose 6.5% to ¥2,460.0, and Fast Retailing added 1.4% to ¥48,590.0. 

Itochu Corp. advanced 0.3% to ¥7,897.0, Marubeni Corp. increased 1.4% to ¥2,417.50, Mitsubishi Corp. jumped 2% to ¥3,070.0, and Mitsui & Company added 2.3% to ¥3,264.0. 

Kawasaki Kisen Kaisha Ltd. added 2.2% to ¥2,246.50, Nippon Yusen traded higher 1.7% to ¥5,307.0, and Mitsui O.S.K. Lines advanced 2.2% to ¥5,047.0. 

Toyota Motor Corp. jumped 1.7% to ¥2,744.0, Honda Motor advanced 2.2% to ¥1,616.0, and Nissan Motor rebounded 4.7% to ¥427.70.