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Japanese stocks lead regional gains, Nikkei up 1.80%

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Japanese stocks led regional gains, and the yen slumped against the dollar after Japan's top currency diplomat, Atsushi Mimura, warned against speculative moves in the currency market.

The Nikkei average jumped 1.80 percent to 39,332.74 while the broader Topix index settled 1.68 percent higher at 2,739.39.

Financials outperformed, with Resona Holdings surging 8.7 percent supported by a rise in Japanese government bond yields.

Tech-related stocks such as SoftBank Group, Advantest and Screen Holdings climbed 2-3 percent.

Japan's leading index decreased more-than-expected in August to the lowest level in nearly four years, preliminary data from the Cabinet Office showed on Monday.

 

The leading index, which measures future economic activity, dropped to 106.7 in August from 109.3 in the previous month. The expected score was 107.2.

Further, this was the lowest reading since October 2020, when it was 106.5.

Similarly, the coincident index weakened to a 6-month low of 113.5 in August from 117.2 a month ago. The coincident index measures the current economic situation.

Meanwhile, the lagging index strengthened to 107.8 in August from 107.2 in the prior month. Asian stocks rallied on Monday and the dollar hit a fresh seven-week peak on the yen after robust U.S. jobs data signaled economic resilience but prompted trades to pare bets on aggressive Federal Reserve interest-rate cuts.

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First Published: Oct 07 2024 | 4:19 PM IST

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