Market Commentary - Foreign Markets
Japanese shares decline after BoJ statement As on : 16-Oct-24  15:35

Japanese markets tumbled after Bank of Japan (BoJ) board member Seiji Adachi stated that monetary policy normalization is underway, but premature hikes should be avoided due to uncertainties in global economic outlook and domestic wage growth.

Investors also reacted to data showing machinery orders in Japan fell more than expected in August.

The Nikkei average slumped 1.83 percent to 39,180.30 while the broader Topix index settled 1.21 percent lower at 2,690.66. Chip-related stocks such as Tokyo Electron, Screen Holdings and Lasertec Corp fell 9-13 percent.

The value of core machine orders in Japan was down a seasonally adjusted 1.9 percent on month in August, the Cabinet Office said on Wednesday - coming in at 858.1 billion yen.

On a yearly basis, core machine orders dropped 3.4 percent - well shy of forecasts for an increase of 3.6 percent and down sharply from 8.7 percent in the previous month.

For the third quarter of 2024, core machine orders are forecast to add 0.2 percent on quarter and 3.9 percent on year to 2,626.7 billion yen.

The total value of machinery orders received by 280 manufacturers operating in Japan decreased by 3.0 percent on month but climbed 15.5 percent on year in August at 2,961.4 billion yen.

Powered by Capital Market - Live News