Market Commentary - Foreign Markets
Japan Nikkei falls on wary of BoJ hawkish outcome As on : 29-May-24  14:32

Japan share market finished session lower on Wednesday, 29 May 2024, as the U.S. bond yields ticked higher following hawkish Fed comments and on expectations that the Bank of Japan could soon raise interest rates again.

The BOJ's next policy-setting gathering is scheduled for June 13-14, and investors are wary of a hawkish outcome as a weakening currency has seen officials including Governor Kazuo Ueda take more hawkish stances.

At closing bell, the 225-issue Nikkei Stock Average index declined 298.50 points, or 0.77%, to 38,556.87. The broader Topix index of all First Section issues on the Tokyo Stock Exchange sank 26.88 points, 0.97%, to 2,741.62.

Banking shares continued their rally on the prospect of higher interest rates buoying profits from lending and investing. At the other end, chip-sector shares, which rose after Nvidia's bullish earnings last week, took a step back.

ECONOMIC NEW: Japan Consumer Confidence Weakens To 7-Month Low- Japan's consumer sentiment decreased more-than-expected in May to the lowest level in seven months, data from the Cabinet Office showed on Wednesday. The seasonally adjusted consumer confidence index dropped to 36.2 in May from 38.3 in April. Further, this was the lowest score since October 2023, when it was 35.9. The latest survey was conducted on May 15 among 8,400 households. All sub-indices registered decreases in May, the survey said. The indicator measuring overall livelihood declined by 2.2 points to 33.9, and that for employment also fell by 2.2 points to 42.0. The index reflecting households' willingness to buy durable consumer goods worsened to 29.0 from 31.8, and the index for income growth slid by 1.2 points to 39.9.

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