Japan Indexes Trim Early Gains After Yen Rebounded Amid Rate Path Uncertainty

Akira Ito
18 Feb, 2025
Tokyo

Stock market indexes in Tokyo extended gains for the second consecutive session amid earnings optimism and overcoming the rally in the yen. 

The Nikkei 225 stock average gained as much as 0.7%, and the broader TOPIX advanced 0.5%; however, benchmark indexes trimmed early morning gains. 

The yen advanced 0.3% to 151.99 against the yen as currency traders speculated that the Bank of Japan is likely to continue its rate hike campaign following the next policy meeting on March 19.

Benchmark indexes advanced in January but managed to erase those gains in February, leaving the indexes nearly unchanged after trading for seven weeks in 2025. 

Market sentiment has weakened because of the ongoing threats of U.S. tariffs on Japan-made vehicles starting April 2. 

Moreover, Japanese automakers are under pressure amid rising competition from Chinese companies and Japan's lagging response to the shift in the market to electric vehicles. 

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average advanced 0.3% to 39,270.40, and the broader TOPIX edged higher 0.3% to 2,775.51.

Tech stocks were among the leading gainers in Tokyo trading, and financial stocks were also in focus. 

Screen Holdings jumped 2.4% to ¥10,815.0, Advantest Corp. jumped 3.2% to ¥9,503.0, and Tokyo Electron gained 1.4% to ¥25,130.0.

Mitsubishi UFJ Financial Group advanced 2% to ¥2,022.0, and Sumitomo Mitsui Financial Group added 0.8% to ¥3,909.0. 

Kawasaki Heavy Industries advanced 4.5% to ¥7,905.0, Mitsubishi Heavy Industries gained 2.7% to ¥2,173.0, and Kanadevia Corp., formerly known as Hitachi Zosen, jumped 7.6% to ¥976.0. 

Bridgestone Corp. decreased 2.8% to ¥5,874.0, despite the tiremaker announcing a $2 billion stock repurchase plan. 

Consolidated revenue in the financial year 2024 ending in December increased 2.7% to 4.4 trillion yen from 4.3 trillion yen, and net income attributable to the parent company decreased 12.8% to 285.0 billion yen from 326.9 billion yen.

The company announced a cash dividend of 210 yen, an increase from 200 yen in 2023, and projected a cash dividend of 230 yen per share in the fiscal year 2025.

The company estimated fiscal 2025 consolidated revenue from continuing operations to decrease 2.3% to 4.33 trillion yen and adjusted operating income to advance 4.5% to 505.0 billion yen.