Japan Market plunges on firmer yen, Middle East tensions

Japan stock market finished session deeply in negative territory on Friday, 05 April 2024, as risk aversion selloff triggered mostly across the board on tracking negative lead from Wall Street overnight. Meanwhile, selloff pressure intensified amid yens appreciation against greenback and heightening tensions in the Middle East. Market declines were led by precision instrument, electric appliance and securities house shares.

Geopolitical concerns grew after Israel's suspected killing of Iranian generals in Damascus earlier this week raised the prospect of potential retaliation by Iran, with Prime Minister Benjamin Netanyahu vowing to defend the country if attacks occur. Market players were also cautious ahead of a key monthly U.S. jobs data release for March that could reveal clues on the timing of possible interest rate cuts, after some Federal Reserve officials suggested that rate cuts might not be imminent. The 225-issue Nikkei Stock Average index plummeted 781.06 points, or 1.96%, to finish at 38,992.08. The broader Topix index of all First Section issues on the Tokyo Stock Exchange retreated 29.38 points, 1.08%, to 2,702.62. Total 25 of 33 TSE sectors closed lower, with precision Instruments, down 3.2%, followed by Securities & Commodities Futures (down 2.5%), Electric Appliances (down2.4%), Machinery (down 2%), and Electric Power & Gas (down 1.68%) sectors, while Textiles & Apparels were top performer (up 1.51%).

ECONOMIC NEWS: Japan Household Spending Slips 0.5% On Year In February-- The average household spending in Japan was down 0.5% on year in February, the Ministry of Internal Affairs and Communications said on Friday - standing at 279,868 yen. On a monthly basis, household spending rose 1.4% - again exceeding expectations for a gain of 0.5% after slumping 2.1% a month earlier. The average monthly income per household stood at 561,495 yen, down 2.5% on year.

CURRENCY NEWS: Japanese yen moved narrowly in the lower 151 range against greenback. At 5 p.m., the dollar fetched 151.33-35 yen compared with 151.68-70 yen in Tokyo at 5 p.m. on Thursday.

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