Japan Nikkei tumbles 2.16% on profit taking

Japan stock market finished session deeply in negative territory on Thursday, 25 April 2024, as profit booking resumed after three consecutive days of gains and on following the mixed cues from Wall Street overnight. Meanwhile, selloff fueled further on disappointing earnings forecasts from Facebook parent Meta Platforms and speculation of Japanese authorities intervention after the yen depreciated to 155 level against greenback.

The 225-issue Nikkei Stock Average index fell by 831.60 points, or 2.16%, to finish at 37,628.48. The broader Topix index of all First Section issues on the Tokyo Stock Exchange stumbled 47.20 points, 1.74%, to 2,663.53.

All 33 TSE sectors closed lower, with Electric Power & Gas sector being bottom performer losers in percentage term, falling 3.32%, followed by Mining (down 3.11%), Transportation Equipment (down 3.76%), Real Estate (down 2.45%), and Electric Appliances (down 2.33%) sectors.

 

CURRENCY NEWS: The Japanese yen hits 155 level, 34-year lows, against greenback on Thursday. The yen was last quoted at 155.29 per US dollar compared with 155.24 on Wednesday.

The yen's slide to fresh 34-year lows is likely to force Bank of Japan Governor Kazuo Ueda to walk a delicate line in guiding monetary policy this week as he tries to maintain a calibrated path to exiting ultra-easy rates without upending the currency. The Bank of Japan is widely expected to leave policy settings and bond purchase amounts unchanged at the conclusion of a two-day meeting on Friday, on prospects of steady wage gains.

The yens weakness against the dollar has ignited the markets anxiety surrounding currency intervention. Japanese Finance Minister Shunichi Suzuki and other policymakers have said they are watching currency moves closely and will respond as needed.

Powered by Capital Market - Live News