Market Commentary - Foreign Markets
Japan Nikkei falls to one-month low As on : 30-May-24  14:10

Japan share market finished session steep lower on Thursday, 30 May 2024, as risk aversion selloff triggered on tracking Wall Street declines overnight and concerns over the adverse impacts of the recent upward trend in long-term interest rates in Japan after recent rise in the yield for the benchmark government bond.

Investors are also cautious about a possible interest rate hike by the BOJ at its upcoming monetary policy meetings. 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 stumbled 502.74 points, or 1.3%, to 38,054.13, its lowest level since April 26. The broader Topix index of all First Section issues on the Tokyo Stock Exchange sank 15.42 points, 0.56%, to 2,726.20.

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.

Most of TSE sectors declined with shares in mining, marine transportation and nonferrous metal issues being notable losers.

CURRENCY NEWS: Japanese yen moved was hovering around upper 156 zone against greenback on Thursday. The dollar fetched 156.96 yen, against 157.12 on Wednesday.

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