On July 24, the Tokyo Stock Exchange experienced a decline, with its main index, the Nikkei, dropping by 1.11%. This downturn was influenced by a rise in the yen, which reached its highest value against the US dollar and the euro since early May.
The Nikkei, which includes the 225 most prominent stocks on the exchange, lost 439.54 points, settling at 39,154.85. The broader Topix index, which includes larger companies from the main section, also fell by 1.42%, losing 40.27 points to close at 2,793.12.
This marked the sixth consecutive day of losses for the Tokyo market, coinciding with the yen climbing to 154 yen per dollar and 167 yen per euro. Speculation was growing around a potential interest rate increase by the Bank of Japan (BoJ) in its upcoming meeting.
In a short span of just two hours, the yen appreciated significantly, moving from nearly 156 yen to 154.35 per dollar, and from the lower range of 169 yen to 167.45 per euro.
The yen’s strength has been challenging for exporters and contributed to the negative sentiment in the market, especially after the three major US stock indices fell the night before. However, some investors were looking for bargains following the Nikkei’s steady decline over the past few days, which helped mitigate further losses.
Among the day’s active stocks, Disco Corp, a manufacturer of precision tools for chip production, saw a loss of 1.77%. Companies in the semiconductor analysis sector also fared poorly, with Lasertec dropping by 1.72% and Tokyo Electron down by 0.94%. Meanwhile, sportswear manufacturer Asics experienced a 2% decline.
In the automotive sector, Toyota Motor, the largest company by market capitalization in Japan, fell by 0.28%, while Honda Motor witnessed a steeper drop of 2.62%. Additionally, Softbank, a key player in telecommunications and investment, decreased by 0.43%.
Looking at the overall market performance, 1,499 companies experienced losses, 123 gained, while 23 remained unchanged. The total trading value reached 3.86 trillion yen, equivalent to approximately 23.06 billion euros.
Image and News Source: https://www.infobae.com/espana/agencias/2024/07/24/la-bolsa-de-tokio-pierde-un-111-por-la-subida-del-yen/
