Market Commentary - Foreign Markets
Japanese markets bounce back as yen extend losses As on : 01-Oct-24  15:22

Japanese markets bounced back as the yen extended losses for a second day running and the BoJ Summary of Opinions indicated no immediate plans for further rate hikes. Also, a key survey showed that big manufacturer sentiment held steady in the third quarter. The Nikkei average rose 1.93 percent to 38,651.97 after shedding 4.8 percent on Monday. The broader Topix index settled 1.69 percent higher at 2,690.78.

Automakers Honda Motor, Toyota and Nissan all rose around 2 percent on the back of a weaker yen. Chip-related heavyweights Advantest and Tokyo Electron climbed 2-3 percent.

The manufacturing sector in Japan continued to contract in September, and at a faster rate, the latest survey from Jibun Bank revealed on Tuesday with a manufacturing PMI score of 49.7. That's down from 49.8 in August and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction. Asian stocks ended mixed in thin trades on Tuesday and the dollar rose after Federal Reserve Chair Jerome Powell hinted at smaller rate cuts. Geopolitical tensions also weighed after Israel launched ground operation in southern Lebanon. Mainland Chinese markets were closed for a week starting today for the National Day holidays.

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