Market Commentary - Foreign Markets
Japan Nikkei falls amid profit taking, automaker test scandal As on : 04-Jun-24  14:10

Japan share market finished lower for the first time in three sessions on Tuesday, 04 June 2024, as investors took action to lock in gains amid mixed lead from Wall Street overnight, yen appreciation against greenback, and automakers testing scandal reports, with shares in mining, insurance, and oil and coal product issues leading declines.

At closing bell, the 225-issue Nikkei Stock Average index fell 85.57 points, or 0.22%, to 38,837.46. The broader Topix index of all First Section issues on the Tokyo Stock Exchange declined 10.59 points, 0.38%, to 2,787.48.

Shares of export-related issues tumbled due to yen appreciation against greenback. A stronger yen reduces the overseas profits of exporters when repatriated.

Shares of automakers declined, after five major vehicle makers admitted falsifying certification tests for their products. The transport ministry ordered Toyota Motor Corp., Mazda Motor Corp. and Yamaha Motor Co. to halt shipments of some vehicles after finding irregularities in certification applications for certain models.

Sony Corp shares rose as speculation the electronics and media giant could acquire U.S. film studio Paramount Global faded.

ECONOMIC NEWS: Japan Monetary Base Rises 0.9% On Year In May- The monetary base in Japan was up 0.9% on year in May, the Bank of Japan said on Tuesday - coming in at 678.824 trillion yen. That's down sharply from the 2.1% increase in April. Banknotes in circulation fell an annual 1.3%, while coins in circulation were down 1.6%. Current account balances rose 1.4%, including a 2.4% jump in reserve balances. The adjusted monetary base was down 14.3% at 667.973 trillion yen.

CURRENCY NEWS: Japanese yen appreciated to lower 155 level against greenback on Tuesday on increased prospects of an interest rate cut by the Federal Reserve. The yen was last quoted at 155.38-40 per US dollar compared with 157.11 on Monday.

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