Japan Indexes Halted 4-Day Market Slide and Yen Remained Under Pressure

Akira Ito
15 Jan, 2025
Tokyo

Stock market indexes in Tokyo traded mixed after falling in the previous four sessions in a row amid shifting geopolitical and trade scenarios. 

The Nikkei 225 stock average decreased 0.3%, but the broader TOPIX rose 0.2%, and investors debated the domestic inflation outlook amid rising speculation that the BoJ is likely to hike its annual estimate.

The yen hovered near multi-month low against the U.S. dollar and bounded around 157.50 as investors speculated that the Bank of Japan is not likely to raise rates over the next two policy meetings. 

Benchmark indexes opened higher after the U.S. producer price inflation in December was cooler than expected, but the core rate of inflation accelerated to an annual rate of 3.5%. 

On Wednesday, the U.S. consumer price inflation is scheduled to be released, and investors are anticipating the overall inflation to accelerate to 2.9% in December from 2.5% in the previous month. 

Closer to home, Japan's business sentiment among large manufacturing companies improved to +2 in January from -1 in December, according to the Reuters Tankan survey released on Wednesday. 

The rebound in global demand lifted the business sentiment in oil refining, materials, steel, and chemical industries.

 

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 0.3% to 38,366.03, but the broader TOPIX rose 0.2% to 2,686.68. 

Tech stocks, retailers, and financial services companies dominated trading in Tokyo. 

Tokyo Electron decreased 1.7% to ¥25,585.0, Advantest Corp. fell 3.9% to ¥9,057.0, Lastertec eased 2.2% to ¥14,600, and Softbank Group closed down 0.1% to ¥8,995. 

Seven & I Holdings gained 1% to ¥2,446.50, Takashimaya increased 0.1% to ¥1,228.0, and Isetan Mitsukoshi Holdings decreased 0.1% to ¥2,442.0. 

Mitsubishi UFJ Financial jumped 1.8% to ¥1,892.50, Sumitomo Mitsui Financial Group advanced 2.4% to ¥3,801.0, and Mizuho Financial Group increased 3.5% to ¥3,979.0.

Panasonic Holdings Corp. gained 0.6% to ¥1,557.0, Sony Group Corp. increased 1.6% to ¥3,206.0, Canon Inc. decreased 0.5% to ¥4,921.0, and Murata Manufacturing Company declined 1.1% to ¥2,469.0.