Japan's Producer Price Holds Steady In December, Yen Rebounds to One-Month High On Rate Path Speculation

Akira Ito
16 Jan, 2025
Tokyo

Stocks in Tokyo advanced in early trading, reflecting gains in overnight trading in New York, but the market rally fizzled towards the end of the session. 

The Nikkei 225 stock average gained 0.1%, and the broader TOPIX edged down a fraction at close. 

Benchmark indexes in Tokyo opened higher after the U.S. monthly core rate of inflation declined in December, the first decrease in six months. 

Investors bid up stocks on speculation that the stubborn inflationary forces are finally weakening, which could help the U.S. Federal Reserve to deliver additional rate cuts in 2025. 

Wall Street enthusiasm was also fueled by strong earnings from Goldman Sachs, JPMorgan Chase, BlackRock, Wells Fargo, and Citigroup. 

Closer to home, Japan's annual producer price inflation held steady at 3.8% in December, matching the rate in the previous month, supporting the case for the Bank of Japan to delay its next rate hike after the March meeting. 

 

Japan Stock Movers

The Nikkei 225 Stock Average increased 0.1% to 38,478.15, and the broader TOPIX declined 0.01%. 

The yen edged higher to 156.05 against the U.S. dollar as investors debated the Bank of Japan's next move. 

Sumitomo Mitsui Financial Group edged higher 0.2% to ¥3,807.0, Mitsubishi UFJ Financial Group fell 0.2% to ¥1,889.0, and Mizuho Financial Group decreased 0.2% to ¥3,971.0. 

Shipping companies were in focus for the second day in a row after the U.S. placed new and stricter sanctions on Russian shipping companies and blacklisted several Chinese shipping companies. 

Nippon Yusen decreased 1.2% to ¥4,802.0, Mitsui OSK Lines Ltd. fell 3% to ¥5,129.0, and Kawasaki Kisen Kaisha Ltd. declined 3.2% to ¥1,991.50. 

Seven & I Holdings increased 1% to ¥2,469.50, and Takashimaya Co. Ltd. rose 0.6% to ¥1,238.0, and J Front Retailing edged up 0.01% to ¥1,988.0, and Fast Retailing advanced 0.2% to ¥48,440.0.