Japan Indexes Rebounded After Rate-Hike Worries Eased

Akira Ito
03 Oct, 2024
Tokyo

Stock market sentiment rebounded in Tokyo after falling sharply in the previous session amid rising tensions in the Middle East. 

The Nikkei 225 stock average jumped 2% and the Topix index increased more than 1% as the yen fell to a one-month low of 146.55 against the U.S. dollar. 

The recently appointed prime minister, Shigeru Ishiba, said it is too soon to raise the interest rate after a meeting with Bank of Japan Governor Kazuo Ueda. 

Prime Minister Ishiba's comments weakened the yen and pushed export heavy stocks higher in Tokyo. 

On the economic front, the au Jibun Bank Japan Services PMI for September was revised lower to 53.1 from the preliminary estimate of 53.9.

Despite the slight easing of activities in the service sector, the index expanded for the third month in a row. but new orders rose modestly amid weak growth in export orders. 

On the price front, input costs increased, driven by higher import costs because of the yen's weakness and rising wages; however, the increase was the lowest in six months. 

 

Japan Stock Movers 

The Nikkei 225 stock average rose 2% to 38,581.96, and the broader Topix index advanced 1.2% to 2,685.42. 

Tech stocks led the gainers in Tokyo as investors overlooked the growing prospects of a wider war in the Middle East. 

Tokyo Electron increased 2.7% to ¥25,760.0, Advantest Corp. gained 4.7% to ¥6,865.0, and Lasertec Corp. added 4% to ¥23,705.0. 

Banks and financial services companies advanced after the yen weakened to a one-month low. 

Mitsubishi UFJ Financial increased 0.1% to ¥1,448.50, Sumitomo Mitsui Financial added 0.2% to ¥3,032.0, but Mizuho Financial edged down 1.3% to ¥2,919.0. 

Shipping companies were in focus for the second week in a row, as the U.S. port workers strike showed no sign of ending in the near future. 

Nippon Yusen jumped 3.5% to ¥5,485.0, Kawasaki Kisen Kaisha added 3.6% to ¥2,290.0, and Mitsui O.S.K. Lines increased 2.5% to ¥5,149.0.