Japan Indexes 2-Day Decline Erases This Week's Gains

Akira Ito
27 Nov, 2024
Tokyo

Stock market indexes in Tokyo edged lower for the second day in a row, and the yen rebounded. 

The Nikkei 225 stock average declined 1% and the broader Topix index dropped 1.2% as investors debated the Bank of Japan's move next month. 

The yen strengthened 0.5% to 152.26 against the U.S. dollar amid speculation that the Bank of Japan may raise interest rates again at the end of its two-day policy meeting on December 19. 

A stronger yen dampens the profit outlook for Japan's export-driven companies, and about 40% of the listed companies in Japan have more than 10% of sales originating in foreign markets. 

Investors are looking forward to the release of Tokyo area inflation data on Friday, and the capital region's inflation is generally seen as a bellwether trend for the national inflation. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 1% to 38,064.41, and the broader Topix index fell 1.2% to 2,658.34. 

Volatile tech stocks led the decliners in Wednesday's trading in Tokyo. 

Advantest Corp. declined 3.7% to ¥8,502.0, Tokyo Electron decreased 1.9% to ¥22,205.0, Disco Corp. advanced 1% to ¥41,800.0, and Softbank Corp. eased 0.1% to ¥191.30. 

Keisei Electric Railway Co. Ltd. jumped 4.6% to ¥4,634.0, and Oriental Land increased 3.2% to ¥3,547.0 after an activist investor took a stake in the railway company. 

Automobile stocks faced selling pressure for the second day in a row amid worries of rising trade tensions with the U.S. and growing competition from Chinese electric vehicles. 

Toyota Motor decreased 3.5% to ¥2,573.50, Honda Motor fell 2.7% to ¥1,297.0, Nissan Motor plunged 4.7% to ¥373.70, and Mitsubishi Motors Corp. eased 4.7% to ¥404.50. 

Nissan Chemical declined 3.2% to ¥5,302.0, and Mitsubishi Chemical Group fell 5.5% to ¥795.90.