July 24, 2024 at 02:09 am EDT
(MT Newswires) -- Japanese stocks plummeted on Wednesday, tracking US market declines, as disappointing technology earnings overshadowed a yen rally to a six-week high ahead of a potential rate hike at next week's central bank meeting.
The Nikkei 225 dropped 1.11%, or 439.54 points, to 39,154.85.
Traders had hoped tech earnings would extend the global stock rally, but Alphabet's cautious stance on AI progress and Tesla's profit miss, along with a delay in its Robotaxi event, drove declines.
Meanwhile, the yen rose to 155.25 per dollar, its highest since June 7, following a nearly 1% gain on Tuesday.
The currency was near a 38-year low of 161.96 at the start of the month, with speculation that Tokyo intervened early in July, potentially spending about 6 trillion yen to stabilize it.
This has prompted the unwinding of carry trades where the yen is borrowed at low rates to invest in higher-return dollar assets.
In economic data, Japan's private sector activity increased for the seventh consecutive month, according to Wednesday's au Jibun Bank Flash Japan Composite PMI.
The manufacturing purchasing managers' index fell to 49.4 in July, signaling a slight contraction, while the Services PMI rose to 53.9, reflecting moderated growth.
On the corporate front, Eagle Industry (TYO:6486) closed 11% higher on Wednesday, as it revised its fiscal 2025 forecasts, citing improved results in the European automotive and construction sectors and first-quarter foreign exchange gains.
The company raised its annual dividend forecast to 90 yen per share from 80 yen, reflecting stronger performance for the fiscal first half ending Sept 30.
Additionally, Metaplanet (TYO:3350) saw its shares surge 36% after announcing a partnership with Hoseki for Bitcoin auditing.
The deal will use Hoseki Verified to enhance transparency and trust in Metaplanet's digital assets through real-time visibility and a public dashboard for verification.
Sumber : MT Newswires
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