Japan Indexes Extended Weekly Losses to Third Week, Nikkei Down 2.3%

Akira Ito
17 Jan, 2025
Tokyo

Stock market indexes in Tokyo closed down and extended weekly losses mirroring market weakness in overnight trading in New York. 

The Nikkei 225 stock average decreased 0.4%, and the TOPIX dropped 0.3% after investors debated future rate paths and inflation outlook. 

The Japanese yen turned volatile after the Bank of Japan Governor Kazuo Ueda said on Wednesday that the central bank is prepared to talk about possible future rate hikes at the next meeting ending on January 24. 

Investors were also cautious ahead of the pick-up in earnings announcements next week amid a shift in geopolitical outlook and a rise in trade tensions with the U.S. 

Japanese corporations are bracing for higher U.S. trade barriers, slower economic growth in China, and the rise of China-made electric vehicles in the global markets. 

Moreover, corporate earnings growth is expected to remain muted amid persistent weakness in domestic consumption growth and a tepid growth in domestic wages. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average declined 0.4% to 38,451.46, and the broader TOPIX fell 0.3% to 2,679.42. 

For the week, benchmark indexes declined 2.3% and 1.8% respectively, and they extended losses to the third consecutive week.  

Nintendo Co. Ltd. declined 4.2% to ¥9,181.0 after the online game company announced the release of the Switch 2 console later in the year. 

Tech stocks led the decliners in Tokyo, and automakers were in focus ahead of corporate results over the next two weeks. 

Advantest Corp. declined 0.4% to ¥9,158.0, Tokyo Electron edged up 0.01% to ¥26,655.0, and Disco Corp. decreased 0.3% to ¥44,030.0. 

Toyota Motor Corp. fell 1.7% to ¥2,788.0, Honda Motor Corp advanced 0.3% to ¥1,460.0, Subaru Corp declined 0.4% to ¥2,570.50. 

Seven &I Holdings rose 0.7% to ¥2,463.0, Takashimaya Corp. decreased 1.9% to ¥1,214.50, Fast Retailing eased 0.4% to ¥48,060.0, and Isetan Mitsukoshi Holdings increased 1.1% to ¥2,431.0.