Japan’s Nikkei fell 2.16% in profit taking

Latest version: April 25, 2024 | 1:31 p.m IST

Japanese stocks closed in negative territory on Thursday, April 25, 2024, after three straight days of gains as profit-taking resumed following mixed signals from Wall Street overnight. Meanwhile, disappointing earnings forecasts from Facebook’s main Meta platform and speculation of intervention by Japanese authorities after the yen fell to the 155 level against the dollar further fueled the sell-off.

The 225-issue Nikkei average closed down 831.60 points, or 2.16%, at 37,628.48. A broad TOPICS index of all first-division stocks on the Tokyo Stock Exchange was down 47.20 points, or 1.74%, at 2,663.53.

All 33 sectors on the Tokyo Stock Exchange closed lower, with the power and natural gas sector recording the lowest declines, down 3.32%, followed by mining (down 3.11%), transport equipment (down 3.76%), real estate (down 2.45%), and Electrical Appliances (down 2.33%) sector.

CURRENCY NEWS: The yen hit 155 against the dollar on Thursday, a 34-year low. The yen was last quoted at 155.29 against the dollar, compared with 155.24 on Wednesday.

The yen’s slide to a 34-year low could force Bank of Japan Governor Kazuo Ueda to take a fine line on the direction of monetary policy this week as he tries to maintain calibration for an exit from ultra-easy rates without raising the yen’s path. The Bank of Japan is expected to keep policy settings and bond purchases unchanged at the end of its two-day meeting on Friday due to the prospect of steady wage growth.

The yen’s weakness against the dollar has fueled market concerns about currency intervention. Japanese Finance Minister Shunichi Suzuki and other policymakers said they were closely monitoring currency movements and would respond if necessary.

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Initial release: April 25, 2024 | 1:15 p.m IST