Weak Yen Fails to Boost Stocks as Expected

Apr 29, 2024 | News On Japan

TOKYO - On April 26, the Nikkei Average closed up 306 points at 37,934 yen, despite a rapidly weakening yen. Experts are noting a shift in the typical correlation between a weak yen and strong stock performance, suggesting that the previous dynamic may be weakening.

Hiroki Hiroki, Chief Strategist at Monex Securities, commented, "There's a sense of caution about intervention; it's unpredictable when it might occur. There is a growing call for the Bank of Japan to halt this yen depreciation, which is increasing speculation about an early interest rate hike by the BoJ. Slowly, these factors are emerging as negatives for the stock market."

Over the weekend, the Dow Jones Industrial Average in New York finished up by more than 150 points, and futures for the Nikkei Average also recovered to the 38,000 yen level.

Regarding this week's market movements, Hiroki further noted, "The focus is on the U.S. Federal Open Market Committee (FOMC) meeting scheduled for May 1-2 (Japan time). The outcomes of this meeting and the subsequent movements in U.S. long-term interest rates and stock prices are likely to have a more significant impact on the Japanese stock market than domestic factors."

Source: ANN

Typhoon No. 25 Nears Kanto Bringing Violent Winds

Large and powerful Typhoon No. 25 was moving north toward the Izu Islands and Kanto on September 21, with destructive winds and torrential rain forecast as the storm makes its closest approach through the evening and night, while at 5 a.m. it was located about 220 kilometers southwest of Hachijojima and moving north at 20 kilometers per hour, with the center expected to approach very close to the Izu Islands after midday before turning northeast over waters east of Kanto.

Typhoon Threatens Widespread Travel Chaos Across Kanto

Large and strong Typhoon No. 25 is expected to make its closest approach to Kanto from the afternoon through the night of September 21, with rail operators canceling services, airlines warning of widespread disruption at Tokyo airports and expressway closures already in effect across parts of Chiba Prefecture.

Emperor and Empress Watch Asian Games Basketball

Emperor Naruhito and Empress Masako watched Japan defeat Kazakhstan in a women’s basketball preliminary-round game at the 20th Asian Games in Nagoya.

Drone Hits Nagoya City Hall During Asian Games Light-Up

A drone filming the illuminated Nagoya City Hall headquarters crashed into a building across the road shortly before 9 p.m. on September 17, with police investigating whether the flight may have violated Japan's Civil Aeronautics Act.

Mount Tokachi Volcano Continues to Emit Smoke

Volcanic smoke continues to rise from Mount Tokachi (Tokachidake), an active volcano in Daisetsuzan National Park in Hokkaido, one week after its eruption alert level was raised to Level 3, restricting entry to the mountain and prompting a series of cancellations at nearby hot spring inns just before the peak autumn foliage season.

MEDIA CHANNELS

MORE Business NEWS

Five-Day Holiday Puts Japan's Cost-of-Living Pressures in Focus

Japan's first five-day Silver Week holiday in 11 years has put renewed attention on household finances, with persistently high food prices and a weakening yen threatening to erode the benefits of the government's planned consumption tax cut on food.

Seventeen Tabs Open and Still No Decision

A list of providers with identical promises turns selection into brute-force sorting. The differences do exist; they are just hidden somewhere other than the homepage.

Japan's Return to Higher Rates Squeezes Households and Firms

The Bank of Japan raised its policy rate from 1.0% to 1.25% on September 18, taking borrowing costs to their highest level in 31 years and accelerating the pace of monetary tightening as persistent inflation and concerns over fiscal expansion put upward pressure on interest rates.

Yen Strengthens Sharply as Intervention Warning Rattles Market

The yen strengthened by more than 1 yen against the dollar in a short period late on September 18 after the Bank of Japan conducted a rate check, a step commonly taken in preparation for possible intervention in the foreign exchange market.

Nikkei Rallies as BOJ Rate Hike Weakens Yen and Lifts AI Shares

Tokyo stocks rose sharply on September 18, with the Nikkei 225 climbing to around 65,350 in afternoon trading after the Bank of Japan raised interest rates to 1.25%, as the yen weakened and investors bought artificial intelligence and semiconductor-related shares.

BOJ Raises Policy Rate to 1.25% as Yen Weakens

The Bank of Japan raised its policy interest rate from 1.0% to 1.25% on September 18, lifting borrowing costs to their highest level in 31 years as policymakers moved to contain growing inflation risks, but the yen weakened sharply after the decision as markets focused on two dissenting votes and uncertainty over the pace of further increases.

Market Spreads: Understanding Bid-Ask Spreads, Trading Costs and Spread Strategies

A market spread is generally the difference between two market prices. Most commonly, traders use the term to describe the bid-ask spread: the difference between the highest price a buyer is currently prepared to pay and the lowest price a seller is prepared to accept.

Starbucks Considers Selling Majority Stake in Japan Business

Starbucks is considering selling a majority stake in its Japanese business, potentially valued at as much as $3 billion, or about 470 billion yen, as the U.S. coffee chain seeks to concentrate management resources on its struggling North American operations.

< 2 3 4 5 >