Market Commentary - Foreign Markets
Japan markets rally on exports stocks As on : 26-Sep-24  16:03

Japanese markets rallied as a weaker yen lifted export-related stocks. The Nikkei average climbed 2.79 percent to 38,925.63 while the broader Topix index settled 2.66 percent higher at 2,721.12.

Automakers Honda Motor and Toyota surged around 3 percent each while chip giants Tokyo Electron and Advantest rallied 8 percent and 5.4 percent, respectively.

The yen fell to a three-week low against the dollar after the minutes of the Bank of Japan's July policy meeting showed board members are split over the future path of interest rates.

Members of the Bank of Japan's Monetary Policy Board said that the country has largely recovered the financial stresses of the past few years, minutes from the central bank's meeting on July 30-31 revealed on Thursday - and the economy is likely to continue to grow.

Japan's financial conditions have been accommodative, the minutes added. Exports and industrial production have been fairly flat, but employment and corporate profits have increased.

Inflation expectations have risen moderately, the minutes continued, but they are consistent with the central bank's price stability target.

At the meeting, the BoJ raised its benchmark rate by 15 basis points and also announced its plan to reduce bond purchases to around JPY 3 trillion by the first quarter of 2026.

Powered by Capital Market - Live News