Japan's Consumer Price Inflation Accelerated In November, Yen Held at

Akira Ito
20 Dec, 2024
Tokyo

Stock market indexes in Tokyo closed down after consumer price inflation accelerated and rose to a three-month high. 

The Nikkei 225 stock average decreased 0.3%, and the Topix index fell 0.4%, and benchmark indexes extended losses for the seventh session in a row.

The annual consumer price inflation rose to 2.9% in November from 2.3% in the previous month, the Ministry of Internal Affairs & Communications said on Friday. 

Food price inflation accelerated to an eight-month high of 4.8% from 3.5%, electricity prices advanced 9.9% from 4.0%, and gas prices jumped 5.6% from 3.5% after the ending of subsidies in May. 

The core rate of inflation, which excludes volatile food and energy prices, increased to a three-month high of 2.7% from 2.3% in October. 

Overall monthly inflation rose to a 13-month high of 0.6%. 

The latest inflation data supports the case for the Bank of Japan to increase interest rates at the next meeting in late January, as the central bank took a cautious approach and awaited more data. 

On Thursday, the Bank of Japan held its policy rate at 0.25% and said it needs more time in assessing wage trends, the global trade landscape, and policies of the incoming presidential administration in the U.S. 

The yen traded down to 156.88 against the U.S. dollar after the BoJ held its rates steady and the U.S. Federal Reserve signaled slower rate cuts in 2025. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average closed down 0.3% to 38,701.90, and the broader Topix index declined 0.4% to 2,701.99. 

For the week, the Nikkei 225 stock average fell 2.2%, and the Topix index decreased 1.6%.

Technology and consumer-related stocks led the decliners in Tokyo trading. 

Tokyo Electron Ltd. declined 0.6% to ¥23,300.0, Advantest Corp. fell 0.9% to ¥8,609.0, Screen Holdings Co. Ltd. eased 0.3% to ¥9,278.0, and Lasertec dropped 2.6% to ¥14,800.0. 

Fast Retailing Co. Ltd. jumped 0.1% to ¥52,770.0, Isetan Mitsukoshi Holdings gained 2.9% to ¥2,431.0, and Seven & I Holdings dropped 3% to ¥2,416.0. 

Nissan Motor declined 0.4% to ¥443.0, and Honda Motor Co. Ltd advanced 0.8% to ¥1,229.50 after two companies confirmed preliminary merger talks amid rising global competition and market shifts to hybrid and electric vehicles.