Japan Nikkei surges 1.4%

Japan stock market finished session notable higher on Thursday, 16 May 2024, on tracking upbeat lead Wall Street overnight after the U.S. consumer price index for April showed inflation is cooling which fueled hopes for after the U.S. consumer price index for April showed inflation is cooling which fueled hopes for two interest rate cuts by the U.S. Federal Reserve in 2024.

Market also climbed after weak domestic GDP data for the January-March quarter raised fresh doubts about the timing of BOJ rate hikes.

The 225-issue Nikkei Stock Average index surged 534.53 points, or 1.39%, to finish at 38,920.26. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 6.66 points, 0.24%, to 2,737.54.

Total 16 of 33 TSE sectors inclined, with Services, Securities & Commodities Futures, Financial Business, Financial Business, and Electric Appliances issues being notable gains, while Pulp & Paper, Oil & Coal Products, Iron & Steel, and Mining issues were notable losers.

ECONOMIC NEWS: Japan's GDP Contracts by 0.5% in Q1 2024- Japan's GDP shrank by 0.5% quarter-on-quarter in the first quarter of 2024. Private consumption, which constitutes more than half of the economy, fell for the fourth consecutive quarter, declining by 0.7%. This downturn reflects ongoing challenges including expensive living costs, sluggish wage growth, and the impact of a quake on the Noto peninsula early in the year, prompting consumers to tighten spending.

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