Japan's Stoc Indexes Struggled After Weakness In Tech Stocks

Akira Ito
27 Jan, 2025
Tokyo

Stock market indexes in Tokyo erased early gains after the weakness in tech stocks weighed on broader market sentiment.

The Nikkei 225 stock average decreased 0.9%, and the broader TOPIX increased 0.3%, as investors reviewed the latest rate decisions by the Bank of Japan. 

The Japanese yen traded around 155.85 against the U.S. dollar after Bank of Japan Governor Kazuo Ueda signaled possible additional rate cuts in the near future. 

Policymakers also revised the inflation outlook higher for the current and next fiscal years, indicating that they are ready to raise rates if necessary. 

Investors are looking ahead to a flood of economic updates later in the week, and the Tokyo-area consumer price inflation is also on tap. 

Industrial output, jobless rate, retail sales, and housing starts data are set to be released at the end of the week, and investors are looking for clues about the health of the economy. 

Japan's GDP in the current fiscal year ending in March is expected to grow less than 0.5% and rise about 1% in the fiscal year ending in March 2026. 

Asian markets lacked direction amid ongoing policy chaos in the U.S. and the lack of political will to lower huge federal government debt, which is increasingly financed by foreign investors. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 0.9% to 39,565.80, and the broader TOPIX increased 0.3% to 2,758.07. 

Tokyo Electron decreased 4.9% to ¥25,805.0, Advantest Corp. dropped 8.6% to ¥9,185.0, and Disco Corp. declined 1.8% to ¥46,580.0. 

Seven & I Holdings increased 0.3% to ¥2,435.0, Isetan Mitsukoshi rose 4.9% to ¥2,588.50, J. Front Retailing gained 3.3% to ¥2,079.50, and Fast Retailing advanced 0.6% to ¥50,000.0. 

Mitsubishi UFJ Financial Group added 0.7% to ¥1,921.00, Sumitomo Mitsui Financial Group gained 1.9% to ¥3,808.00, and Mizuho Financial added 1.6% to ¥4,049.0.