Tokyo, Sept. 9, 2024 – Tokyo’s Nikkei 225 tumbled over 3% on Monday, mirroring global market jitters after weaker-than-expected U.S. jobs data heightened speculation of a potential Federal Reserve rate cut.
The benchmark index dropped 3.02%, or 1,098.77 points, to 35,292.70. The broader Topix index fell 2.67%, losing 69.28 points to settle at 2,528.14.
The U.S. dollar traded at 142.60 yen, slightly up from 142.29 yen on Friday in New York, as investors remained wary of the yen’s strength and its impact on the market.
Japanese stocks faced pressure from both U.S. market losses and caution over the yen’s rise.
Senior market analyst Toshiyuki Kanayama of Monex commented that these factors weighed heavily on investor sentiment.
Recent gains in the yen have been driven by expectations of a U.S. Federal Reserve rate cut and speculation that the Bank of Japan might continue raising borrowing costs.
U.S. jobs data released on Friday fell short of analyst forecasts, signaling a slowing economy and triggering a global sell-off.
This, combined with the stronger yen, created a “risk-off” mood, dragging down stocks across various sectors.
Semiconductor shares in Tokyo took a significant hit, with Tokyo Electron dropping 5.77% to 20,730 yen and Advantest down 5.85% to 5,525 yen.
Automakers also experienced losses, with Toyota falling 3.14% and Honda losing 3.47%.
However, not all was gloomy. Seven & i Holdings, the Japanese owner of the 7-Eleven convenience store chain, saw a 2.84% rise to 2,194 yen following a report by Bloomberg News that Canadian retail giant Alimentation Couche-Tard remains focused on a potential takeover.
This followed Seven & i’s rejection of Couche-Tard’s initial offer, which it deemed to “grossly undervalue” the company.
Despite the broader market decline, the ongoing interest in mergers and acquisitions, particularly in the business sector, offers a glimmer of hope amid an otherwise turbulent market.
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