Japan Indexes Rebounded After Two Days of Losses; Yamaha Corp. and NH Foods Dropped 10%

Akira Ito
05 Nov, 2024
Tokyo

Tokyo market indexes advanced after investors returned from a three-day holiday.

The Nikkei 225 stock average gained 1% and the Topix index advanced 0.8% after investors reacted to the rebound in tech stocks in overnight trading in New York. 

Last week, market indexes extended losses to the third week in a row amid growing policy uncertainty and political instability. 

Investors are looking forward to the possible formation of an alliance between LDP-Komeito and the Democratic Party for the People, ending political instability for now.

Moreover, mixed corporate results dampened market sentiment as investors grappled with elevated tensions in the Middle East. 

Market enthusiasm was muted ahead of the U.S. presidential and congressional election on Wednesday, which could determine the direction of future government spending, support for the war in Ukraine, and military activities in Asia. 

The U.S. Federal Reserve is set to announce its rate decisions on Thursday, and investors are divided about the possible rate cut of 25 basis points following the supersize 50-basis-point cut in September. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 1.1% to 38,474.90, and the broader Topix index advanced 0.8% to 2,664.26. 

Tokyo Electron gained 1.9% to ¥22,930.0, Advantest increased 1.7% to ¥8,899.0, and Disco Corp. advanced 4.4% to ¥44,540.0. 

Yamaha Corp. declined 13.2% to ¥1,081.0 after the musical instrument company reported interim results. 

Revenue in the first-half ending in September increased 3.9% to 228.1 billion yen, net income plunged 64.6% to 5.3 billion yen, and earnings per share dropped to 10.67 from 29.44 a year ago. 

The company declared an interim dividend of 37 yen per share, reflecting a 3-for-1 stock split on October 1. 

NH Foods declined 9.7% to ¥4,754.0 after the food processing company reported its interim financial results. 

Revenue in the first half ending in September increased 4.9% to 683.8 billion yen, net profit declined 9.8% to 19.7 billion yen, and earnings per share eased to 174.19 yen from 194.88 yen a year ago.

The company estimated year-end dividend of 135 yen, an increase from 119 yen in the previous year.