2024-01-23 22:48:00
The Tokyo stock market continued to fall on the 24th. After the Bank of Japan expressed a somewhat hawkish opinion the previous day, the momentum of the yen’s depreciation has slowed in the foreign exchange market, and export-related stocks such as electrical equipment, precision equipment, and machinery have weakened due to a decline in earnings expectations. Real estate, construction, and land transportation stocks, which have relatively large amounts of interest-bearing debt, are also cheap due to expectations of future interest rate increases.
- The Tokyo Stock Price Index (TOPIX) was 2533.05, down 0.4% from the previous day – as of 10:43 a.m.
- The Nikkei Stock Average fell 0.3% to 36,392.40 yen.
On the 23rd, Bank of Japan Governor Kazuo Ueda declined to say when the world’s last negative interest rate would be abolished, but he did hint that the bank is preparing to lift negative interest rates. The yen has fallen more than 5% in the past three weeks, but has recently been trending strongly.
Tetsuo Seshita, Director of Multi-Manager Operations, Saison Investment Trust
- Bank of Japan Governor Ueda has also indicated that progress is being made towards lifting negative interest rates, so basically we can see a story in which interest rates will rise.
- Monetary tightening is basically a negative force for the stock market, but a positive opposite force for banks.
Ryuta Otsuka Strategist at Toyo Securities
- Japanese stocks, which have been rising rapidly since the beginning of the year, are likely to calm down following the events of the Bank of Japan meeting.
- There is a strong expectation that the Bank of Japan will change its policy in April, and the yen is likely to trend higher in the future.
insight
- 30 out of 33 industries on the TSE declined
- Real estate has the highest rate of decline, and banks have the highest rate of increase.
background
- The dollar/yen exchange rate remained in the low 148 yen range, and following briefly reaching the high 148 yen range, the yen’s depreciation slowed down – the previous day’s closing price of Japanese stocks was 147 yen 91 yen.
- Bank of Japan Governor says certainty of achieving price target is “gradually increasing” – easing will be maintained
- Texas Instruments: 1Q revenue forecast falls below market expectations – Snapshot
- Chinese authorities’ bold stock support measures cause lukewarm reaction from investors as they grow distrustful
- Click here for the previous day’s overseas market conditions
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