Tokyo hit by the rise in bond rates in the United States

Tokyo hit by the rise in bond rates in the United States
Tokyo hit by the rise in bond rates in the United States

Tokyo (awp/afp) – The Tokyo Stock Exchange opened sharply lower on Friday, suffering from the rise in American bond yields the day before after indicators showing a rebound in economic activity in the United States, which Wall Street also took it badly.

The flagship Nikkei index dropped 1.65% to 38,459.92 points around 00:20 GMT and the broader Topix index lost 0.95% to 2,728.63 points.

The still positive picture of the American economy painted by several indicators on Thursday reinforced the hypothesis of a continuation of an aggressive monetary policy of the American Federal Reserve (Fed), further postponing its rate cuts, expected for chandeliers by the stock markets.

Japan is particularly sensitive to the rise in American bond rates because Japanese monetary policy remains very accommodating at the moment, which is greatly weakening the yen.

The weakness of the yen has its advantages, by artificially inflating the foreign profits of Japanese companies, but also serious disadvantages: it at the same time weighs down the purchasing power of households, and therefore domestic consumption.

The sudden fall of the Japanese currency, which reached new lows against the dollar since 1990 at the end of April, probably pushed the Japanese government to intervene twice in the foreign exchange market a few weeks ago.

These interventions and their scale should be officially confirmed by monthly data from the Japanese Ministry of Finance expected at the end of next week.

Currencies and oil almost stable

The dollar/yen rate was almost unchanged around 00:20 GMT, with one dollar trading for 156.98 yen compared to 156.93 yen on Thursday at 9:00 p.m. GMT.

The euro was worth 169.66 yen against 169.72 yen the day before, and 1.0808 dollars against 1.0815 dollars on Thursday at 9:00 p.m. GMT.

The oil market was close to equilibrium: the barrel of American WTI fell barely 0.05% to 76.83 dollars around 00:10 GMT, and the barrel of Brent from the North Sea was also almost stable (- 0.04% to 81.33 dollars).

etb/juf

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