Tokyo Market Summary: Nikkei 225 Extends Surge, Dollar Plunges to Low 160 Yen Range on Intervention

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In Tokyo markets on the 31st, the Nikkei 225 Stock Average extended its sharp rally, rising 2,494.59 points from the previous day to close at 64,362.02. The TOPIX also gained 50.80 points to 4,003.30. Buybacks of AI-related stocks accelerated on the back of strong US corporate earnings, while profit-taking spread in non-AI sectors, with 39% of stocks advancing and 59% declining. In the foreign exchange market, the dollar plunged following currency intervention by the government and the Bank of Japan. As of 5 p.m., the dollar stood at 160.20 to 160.21 yen, a sharp decline of 3.52 yen from the previous day, marking significant dollar weakness and yen strength. In the bond market, long-term government bond futures edged higher, and the yield on newly issued 10-year government bonds fell 0.005 percentage points to 2.790%. Dubai crude oil futures on the Tokyo Commodity Exchange fell back, pressured by the stronger yen and lower WTI prices, with the settlement price for the most active contract dropping 3,690 yen to 73,090 yen, hitting a three-week low. Gold futures on the Osaka Exchange also plunged on the stronger yen, with the most active contract settling 193 yen lower at 21,526 yen. The Bank of Japan decided to maintain its current monetary policy, and the consumer price index for Tokyo's 23 wards in July rose 1.9% year-on-year, marking the second consecutive month of accelerating growth.

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