Japan's Nikkei 225 Stock Average Extended 3-Day Rally, Yen Drifts Near 150-Mark

Akira Ito
15 Oct, 2024
Tokyo

Stocks in Tokyo advanced for the third day in a row after the yen drifted lower and fell to a five-week low. 

The Nikkei 225 stock average increased 0.6%, and the Topix index decreased 0.2%, after investors returned from a three-day holiday. 

Stocks retained their upward bias in Tokyo as investors surmised that the Bank of Japan is not likely to raise rates in the imminent future. 

Moreover, market sentiment was bolstered following the advance in indexes in overnight trading in New York and the S&P 500 index and the Dow Jones closing at new highs. 

Investors have been on edge over the last five weeks on the worry that the hawkish central bank may continue its aggressive increase in interest rate stance. 

However, market sentiment improved after the recently appointed prime minister, Shigeru Ishiba, urged the central bank to take a gradual approach to raising rates. 

Moreover, officials at the central bank also reiterated the central bank's plan to raise rates in a gradual fashion and avoid excessive depreciation of the yen. 

Investors also reviewed the latest announcement by China's finance minister, Lan Fo'an, over the weekend. 

Finance ministers comments fell short of market expectations, and China-linked stocks headed lower in Tuesday's trading. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 0.8% to 39,910.55, and the broader Topix index increased 0.6% to 2,723.57. 

Seven & I Holdings declined 0.2% to ¥2,287.50, and the company announced a restructuring plan to thwart off a hostile takeover offer from Canada-based Couche-Tard. 

Mitsubishi UFJ Financial rose 2.2% to ¥1,586.50, Sumitomo Mitsui Financial advanced 1.6% to ¥3,216.0, and Mizuho Financial gained 1.5% to ¥3,093.0. 

Tokyo Electron increased 4.4% to ¥26,770.0, Advantest Corp. gained 3.3% to ¥8,061.0, and Disco Corp. advanced 2.2% to ¥38,340.0.