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29 Mar 2024

The Trade Academy Team

07:22 CET - 3 min read

Friday Morning Coffee - Markets Update - 29 Mar 2024 - Nikkei Bounces Back as Yen Stabilizes

Friday Morning Coffee - Markets Update - 29 Mar 2024 - Nikkei Bounces Back as Yen Stabilizes


by TradingView

Global Markets Roundup: 29 Mar 2024

Trading volume is expected to remain flat as markets are closed for the Easter Good Friday holiday.

The Nikkei share average in Japan saw a notable rebound on Friday, recuperating from significant losses observed in the preceding session. Market sentiment was buoyed by the stabilization of the yen, which had previously hit a three-decade low. As of the midday break, the Nikkei NI225 had surged by 0.74%, reaching 40,466.82 points, marking a recovery from its recent downturn. However, the index remains on track to record a weekly loss of approximately 1%. Similarly, the broader Topix TOPIX experienced a positive upswing, climbing by 0.81% to 2,773.14 points. Despite this gain, the index is anticipated to conclude the week with a 1.4% decrease.

Fumio Matsumoto, Chief Strategist at Okasan Securities, attributed the market's resurgence to a correction following technical setbacks in the previous session. Matsumoto noted that while investors maintain a degree of caution regarding potential currency interventions, the prevailing weak yen is generally perceived as a favorable factor for domestic equities.

On Thursday, the Nikkei had closed with a decline of 1.46%, influenced by various stocks being discounted for dividend rights ahead of the fiscal year-end. Additionally, concerns lingered over the possibility of a currency intervention to bolster the yen, particularly after the USDJPY pair reached a 34-year low against the dollar earlier in the week.

The yen USDJPY pair showed marginal gains, reaching 151.34 against the dollar by the latest trading period.

Several key players in the market experienced positive movements, with Fast Retailing 9983, the owner of the Uniqlo brand, rising by 0.92%. Tokyo Electron 8035 and Advantest 6857, both involved in chip-related activities, also saw increases of 0.82% and 0.97%, respectively.

Notably, the property sector, represented by RE, surged by 3.12%, emerging as the top performer among the Tokyo Stock Exchange's 33 industry indexes. Leading companies within this sector such as Mitsui Fudosan 8801, Tokyo Tatemono 8804, and Sumitomo Realty & Development 8830 witnessed gains of around 4% each.

The robust performance of the property sector can be attributed to a government survey released earlier in the week, indicating a significant uptick in land prices in 2023—the fastest pace seen in 33 years. Furthermore, optimism surrounding the Bank of Japan's cautious approach towards interest rate hikes continues to bolster stock prices within the sector, as noted by Matsumoto of Okasan Securities.

The West Texas Intermediate (WTI) crude futures experienced a notable uptick, rising by 2.24% to reach a settlement price of $83.17 per barrel. This marks the third consecutive month of gains, reflecting the ongoing efforts of the OPEC+ alliance to limit the supply of crude oil. Additionally, persistent geopolitical tensions in Eastern Europe and the Middle East have contributed to the upward momentum in crude prices. In the realm of metals, the most-traded May copper contract on the Shanghai Futures Exchange HG1! saw a modest increase of 10 yuan, equivalent to 0.01%, reaching 72,190 yuan ($9,988.65) per metric ton as of 0145 GMT.

Meanwhile, agricultural commodities witnessed significant movements as well. The most-active CBOT corn contract ZC1! surged by 15-1/4 cents, settling at $4.42 per bushel. This surge propelled benchmark May futures (CK24) to their highest level since February 9, reaching $4.48, and concluding the month approximately 3% higher, following four consecutive months of decline. Similarly, CBOT wheat ZW1! experienced a notable gain of 12-3/4 cents, closing at $5.60-1/4 per bushel. However, soybeans ZS1! saw a marginal decline of 1 cent, settling at $11.91-1/2 per bushel. July London cocoa C2! settled up by 62 pounds, or 0.8%, reaching 7,725 pounds per metric ton, albeit remaining significantly below the record peak of 8,009 pounds recorded earlier in the week. May robusta coffee RC1! experienced a downturn, settling down by $80, or 2.2%, at $3,479 per ton, retracing slightly following a recent period of strong gains. Conversely, May arabica coffee KC1! saw a modest decline of 0.9%, settling at $1.8885 per lb.

Trading volume and economic calendar is scarce as markets are closed for the Easter Good Friday holiday.

You can view all markets data and charts here.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team

Rating: Mixed Outlook

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