Yen Drops to Six-Week Low, Producer Price Inflation Accelerates In September

Akira Ito
10 Oct, 2024
Tokyo

Tech stocks powered the market rebound in Tokyo in Thursday's trading, tracking gains in overnight trading in New York. 

The Nikkei 225 stock average gained 0.3%, and the broader Topix index advanced 0.2%. 

The yen continued its downward journey to 149.16 against the U.S. dollar and fell to a six-week low as investors lowered their expectations of another rate increase in the near future. 

Producer price inflation in Japan accelerated to 2.8% in September from 2.6% in August, the Bank of Japan reported Thursday. 

The measure of wholesale price inflation was positive for the 43rd month in a row, due mainly to higher prices of basic items, including food staples and rice. 

Rising costs of transportation and fertilizers contributed to inflationary pressures. 

Stock market indexes in Tokyo have been volatile amid rate path uncertainties, elevated geopolitical tensions in the Middle East, and worries about the economic slowdown in China and the U.S. 

The People's Bank of China launched a new lending program worth 500 billion yuan, or $70 billion, that will provide liquidity to qualified brokerage houses, insurance companies, and asset management companies to purchase stocks. 

Investors are hoping that the press conference scheduled by China's finance minister on Saturday may provide clarity on potential broad fiscal reforms. 

Investors are also gearing up for the start of the earnings season starting Friday, and retail stocks were in focus ahead of the release of their quarterly results. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 0.3% to 39,380.89, and the broader Topix index added 0.2% to 2,712.67. 

Mitsubishi UFJ Financial increased 1.6% to ¥1,525.50, Sumitomo Mitsui Financial advanced 1.3% to ¥3,121.0, and Mizuho Financial gained 0.6% to ¥3,018.0. 

Seven & I decreased 0.4% to ¥2,325.0, Fast Retailing Company increased 1.3% to ¥51,360.0, and Isetan Mitsukoshi rose 0.9% to ¥2,355.0. 

Toyota Motor advanced 0.7% to ¥2,581.0, Honda Motor increased 1.4% to ¥1,574.0, and Nissan Motor edged higher 1% to ¥399.80. 

Marubeni Corp. added 1% to ¥2,438.50, Itochu Corp gained 0.7% to ¥7,769.0, and Mitsui & Company added 0.7% to ¥3,256.0.