The Tokyo Stock Exchange began to rebound on Tuesday, October 1 in the morning, after having declined the day before in the face of the rise in the yen and in a climate of uncertainty over the economic policy of Shigeru Ishiba, who is officially due to become the Prime Minister of Japan on Tuesday. . In Tokyo, the flagship Nikkei index regained 1.56% to 38,512.00 points around 01:00 GMT and the broader Topix index regained 1.38% to 2,682.56 points.
Chinese places are closed due to a public holiday in the country, which is celebrating the 75th anniversary of the People’s Republic on Tuesday.
Japanese stocks are expected to recover on Tuesday, “the question being whether the fall in the yen can bring them back from the depths reached the day before”commented analyst Ryotaro Sawada of the Tokai Tokyo Intelligence Lab. The Nikkei fell by almost 5% on Monday following the appointment last weekend of Shigeru Ishiba at the head of the Liberal Democratic Party (PLD), who is to become prime minister to replace the unpopular Fumio Kishida. The markets were instead banking on the election as president of the LDP of Sanae Takaichi, whose comments in favor of an accommodating monetary policy had contributed to lowering the yen.
Expected status quo
Shigeru Ishiba, for this part, should “maintain the status quo by supporting the path to normalization taken by the Bank of Japan (BoJ)which should support the yen”a currency movement frowned upon by the markets because it weighs down the foreign revenues of Japanese exporting groups, underlined Stephen Innes in a note from SPI Asset Management.
The President of the American Central Bank (Fed), Jerome Powell, for his part repeated the day before that the institution still planned two rate cuts by the end of the year, “if the economy behaves as expected”. The large gap between the ultra-accommodating policy of the BoJ and the tightening observed in particular in the United States over the past two years had contributed to the fall of the yen. On the stock market, Japanese automobile companies – major exporters – benefited from the decline in the Japanese currency: Toyota gained 2.2%, Honda 2.6% and Nissan 1.6%. On the foreign exchange market, the greenback rose to 143.99 yen per dollar around 00:55 GMT, compared to 143.63 yen on Monday at 9:00 p.m. GMT. The euro also appreciated to 160.29 yen against 159.94 yen the day before, and was trading for 1.1132 dollars instead of 1.1135 dollars on Monday.
On the oil market, the price of a barrel of American WTI rose 0.25% to $68.34 around 00:45 GMT and that of Brent from the North Sea gained 0.28% to $71.90.
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