Japan Indexes Struggled Ahead of Earnings and National Election Uncertainty

Akira Ito
21 Oct, 2024
Tokyo

Investors turned cautious in Monday's trading in Tokyo ahead of the national election this weekend. 

The Nikkei 225 stock average and broader Topix index declined a fraction as investors hoped that the ruling LDP party would return to power amid widespread dissatisfaction with the government. 

Investors also reviewed the People's Bank of China's decision to lower loan prime rates by 25 basis points over the weekend. 

The move is widely expected to support local residential property market transactions, but the latest monetary measure did not go far enough to bolster market sentiment. 

Market indexes in China extended weekly losses as investors looked forward to a meeting of the parliament committee later this month, where lawmakers are expected to increase the government's borrowing limits. 

Closer to home, market indexes in Tokyo extended weekly gains in cautious trading ahead of the national election this week. 

Prime Minister Shigeru is facing widespread voter discontent following a political fund-raising scandal where lawmakers of the ruling LDP party failed to make appropriate disclosures. 

On the economic front, Japan is expected to announce its manufacturing and service sector surveys and Tokyo-area inflation data later in the week.

Gold traded at a new high of $2,727.70 an ounce in international trading as the People's Bank of China continued to increase its exposure to the yellow metal. 

Moreover, steady retail demand from India, China, and the Middle East also supported the precious metal's advance in recent weeks. 

Moreover, investors looked forward to the release of quarterly results from at least 30 leading corporations this week.

 

Japan Movers 

The Nikkei 225 Stock Average decreased 0.1% to 38,954.60, and the broader Topix index declined 0.3% to 2,679.91. 

The yen edged slightly higher to 149.35 against the U.S. dollar, keeping the stock market advance in check. 

Mitsubishi UFJ Financial declined 1.9% to ¥1,613.0, Sumitomo Mitsui Financial decreased 1.9% to ¥3,202.0, and Mizuho Financial fell 0.8% to ¥3,180.0. 

Semiconductor equipment stocks advanced following a rise in advanced chip companies in Friday's New York trading. 

Tokyo Electron increased 0.9% to ¥23,720.0, and Advantest Corp. rose 2.6% to ¥8,181.0. and Disco Corp. jumped 3.2% to ¥39,540.0. 

Toyota Motor decreased 0.4% to ¥2,541.50, Honda Motor Co declined 0.5% to ¥1,525.50, and Nissan Motor Co added 0.9% to ¥399.10. 

Nippon Yusen KK jumped 1.9% to ¥5,238.0, Mitsui O.S.K. Lines added 1.2% to ¥5,055.0, and Kawasaki Kisen Kaisha Ltd. added 3.9% to ¥2,161.0. 

Panasonic Holdings jumped 0.4% to ¥1,276.0, Nidec Corp advanced 0.7% to ¥2,889.0, and Fanuc Corp decreased 0.6% to ¥3,958.0. 

Seven & I increased 1.2% to ¥2,237.50, Fast Retailing decreased 0.8% to ¥53,120.0, and Isetan Mitsukoshi decreased 3.9% to ¥2,215.50.