The Tokyo Stock Exchange opened slightly higher on Friday October 11, in a market marked by caution following a decline on Wall Street, against a backdrop of uncertainties over American monetary policy and a weakening of the yen. In Tokyo, the flagship Nikkei index rose 0.29% to 39,495.07 points around 00:10 GMT. The broader Topix index gained 0.27% to 2,720.09 points.
The New York Stock Exchange fell on Thursday, scalded by a higher-than-expected inflation figure, “which has reduced expectations of a rate cut by the American central bank (Fed)»observed Kosuke Oka, analyst at Monex Securities. “We expect the Japanese market to move weakly in the wake of Wall Street’s decline, keeping an eye on fluctuations in the yen against the dollar”he continued.
The Japanese currency lost ground at the start of Asian trade, to 148.71 yen per dollar around 00:05 GMT: it has been approaching the symbolic level of 150 yen for several days.
Chinese wait-and-see attitude
Japanese distribution giant Seven & i Holdings saw its stock fall 3.95% in early trading in Tokyo. The group announced Thursday a major restructuring to focus on its 7-Eleven convenience stores to better resist the takeover attempt by Canadian Couche-Tard, but also lowered its operating profit forecasts.
For its part, the clothing juggernaut Fast Retailing (Uniqlo brand) climbed 0.64%, after having unveiled record annual results the day before for its 2023/24 financial year ended August 31, boosted by robust retail sales. ‘international.
The stock markets of mainland China and Hong Kong could for their part play a wait-and-see attitude on Friday, after having been buoyed the day before by a liquidity package from the Chinese central bank to stimulate the economy.
“We await the Chinese Ministry of Finance conference on Saturday, where we hope for more details on the rollout of fiscal stimulus measures – although substantial announcements are expected to remain limited”after the planning agency’s conference on Tuesday bitterly disappointed market expectations, underlines Chris Weston, of broker Pepperstone.
Stable oil
Oil prices were trying to stabilize at the start of Asian trade, following a sharp rise. A barrel of American West Texas Intermediate (WTI) maturing in November fell 0.08% to 75.79 around 00:15 GMT, after gaining more than 3.5% on Thursday. A barrel of Brent from the North Sea for delivery in December fell 0.10%, to 79.32 dollars.
Operators fear a possible Israeli response against oil installations in Iran, likely to affect production, refining and export sites, and to destabilize the global supply of black gold. Statements by Israeli Defense Minister Yoav Gallant, who promised a response on Wednesday “deadly, precise and surprising”, “keep the market waiting for retaliation, and brokers – although increasingly tired of following the headlines – know that the likelihood of a disruption in Iranian crude production is still there”note Chris Weston.
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