Japanese Yen In Focus Amid Growing Prospects of BoJ Intervention

Akira Ito
19 Nov, 2024
Tokyo

Stock market indexes in Tokyo rebounded in Tuesday's trading, and the yen was in focus on the rising government intervention prospects. 

The Nikkei 225 stock average gained 0.4%, the broader Topix index advanced 0.6%, and the yen hovered near 154.50 against the U.S. dollar. 

Bank of Japan Governor Kazuo Ueda reiterated the central bank's commitment to raising rates gradually but failed to provide the timing and size of these increases.

The yen edged slightly higher on the growing speculation that the Bank of Japan is preparing to conduct another market intervention and arrest the rapid decline of the currency.

Stocks in Tokyo have been volatile over the last six weeks after the persistent weakening of the yen supports higher profits at export-driven companies but also lifts inflation, which negatively impacts consumer spending. 

On the economic front, investors are looking forward to the release of international trade data on Wednesday and an inflation update on Friday. 

 

Japan Stock Movers 

The Nikkei 225 stock average increased 0.4% to 38,377.07, and the broader Topix index gained 0.6% to 2,708.04. 

Banks and leading export companies led the market gainers in Tuesday's trading. 

Sumitomo Mitsui Financial jumped 3.1% to ¥3,669.0, Mitsubishi UFJ Financial advanced 1.6% to ¥1,838.50, and Mizuho Financial gained 2.7% to ¥3,842.0. 

Panasonic Holdings advanced 4.2% to ¥1,547.50, Canon added 1.1% ¥5,039.0, and Sony Group inched higher 0.2% to ¥2,922.0. 

Japan Steel Works increased 11.3% to ¥6,488.0, Nidec Corp. advanced 4.4% to ¥2,864.0, and Fujikura Ltd. jumped 6.9% to ¥5,638.0. 

Suzuki Motor increased 0.8% to ¥1,654.0, but Recruit Holding declined 3% to ¥9,403.0.