{"id":15246,"date":"2024-10-04T09:12:43","date_gmt":"2024-10-04T09:12:43","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15246"},"modified":"2024-10-04T09:12:43","modified_gmt":"2024-10-04T09:12:43","slug":"nikkei-set-for-decline-as-ishiba-shakes-markets","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/nikkei-set-for-decline-as-ishiba-shakes-markets\/","title":{"rendered":"Nikkei Set for Decline as Ishiba Shakes Markets"},"content":{"rendered":"\n<p><strong>Key points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Nikkei index slipped 2.8% this week, as shifts in Prime Minister Ishiba&#8217;s stance on rate hikes roiled markets.<\/li>\n\n\n\n<li>Shipping stocks fell sharply after a faster-than-expected resolution to the U.S. port strike, with Kawasaki Kisen dropping 9.2%.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Japanese equities faced downward pressure this week as <a href=\"https:\/\/www.vtmarkets.com\/market_analysis\/week-ahead-ishiba-to-reshape-the-japanese-economy\/\"><strong>Prime Minister Shigeru Ishiba&#8217;s shifting position on interest rate policy<\/strong><\/a> sent ripples through the markets.&nbsp;<\/p>\n\n\n\n<p>The Nikkei index dropped 2.8% over the week, reflecting its steepest weekly fall in a month. On Friday, the Nikkei did rise by 0.5%, reaching 38,785.15 in morning trade, but the broader market recovery has been slow, especially following the uncertainty sparked by Ishiba&#8217;s comments.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/image-2.jpeg\" alt=\"\" class=\"wp-image-15247\" style=\"width:1083px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Nikkei 225 consolidates near 38,575, with bullish momentum building, as seen on the <\/em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\"><em>VT Markets app<\/em><\/a><em>.<\/em>\u00a0\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Yen&#8217;s Rally Fades as Ishiba&#8217;s Dovish Shift Unsettles Markets<\/strong><\/h2>\n\n\n\n<p>The yen initially surged when Ishiba, previously a critic of the Bank of Japan&#8217;s aggressive monetary easing, gained support from the ruling Liberal Democratic Party.&nbsp;<\/p>\n\n\n\n<p>However, his recent dovish stance, where he suggested that Japan is not currently in an environment for additional rate hikes, reversed that yen rally.&nbsp;<\/p>\n\n\n\n<p>This sudden shift unsettled traders, with the Nikkei unable to fully regain its earlier losses.<\/p>\n\n\n\n<p>The Topix index followed a similar trajectory, increasing by 0.6% to 2,699 on Friday but remaining down 1.5% for the week.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>More Clarity to Come<\/strong><\/h2>\n\n\n\n<p>Prime Minister Ishiba is expected to give a policy speech soon, which could provide clarity and possibly ease market concerns, but for now, the uncertainty has left investors cautious.<\/p>\n\n\n\n<p>Several sectors within the Japanese market experienced contrasting fortunes. Fast Retailing, a heavy hitter in the Nikkei, managed to rise 1.5%, contributing to some of the gains seen on Friday.&nbsp;<\/p>\n\n\n\n<p>Oil and coal stocks benefited from rising energy prices, spurred by growing fears that the ongoing Middle East conflict could escalate further, potentially disrupting global supply chains.<\/p>\n\n\n\n<p><strong>In case you missed, previously: <\/strong><a href=\"https:\/\/www.vtmarkets.com\/analysis\/nikkei-rebounds-on-softer-yen-after-sharp-sell-off\/\"><strong>Nikkei Rebounds on Softer Yen after Sharp Sell-of<\/strong>f<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Shipping Stocks Tumble as Strike Resolution Pressures Freight Rates<\/strong><\/h2>\n\n\n\n<p>However, it was the shipping industry that bore the brunt of the week\u2019s selloff. The sudden resolution of the<a href=\"https:\/\/x.com\/WSJ\/status\/1840968238672322995\"><strong> U.S. dock workers&#8217; strike took many by surprise<\/strong><\/a>, with Kawasaki Kisen dropping 9.2%, Nippon Yusen falling 8.8%, and Mitsui O.S.K. Lines shedding 6.7%.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Dockworkers went on strike at dozens of U.S. ports, a work stoppage that threatens to rattle the economy weeks before the election <a href=\"https:\/\/t.co\/ItjEaWdiBb\">https:\/\/t.co\/ItjEaWdiBb<\/a> <a href=\"https:\/\/t.co\/ItjEaWdiBb\">https:\/\/t.co\/ItjEaWdiBb<\/a><\/p>&mdash; The Wall Street Journal (@WSJ) <a href=\"https:\/\/twitter.com\/WSJ\/status\/1840968238672322995?ref_src=twsrc%5Etfw\">October 1, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The end of the strike will likely renew downward pressure on freight rates, as the container shipping market, already reeling from oversupply and falling demand, braces for further declines.<\/p>\n\n\n\n<p>Looking ahead, traders will likely monitor Ishiba\u2019s upcoming speech and any subsequent announcements regarding Japan\u2019s monetary policy.&nbsp;<\/p>\n\n\n\n<p>While Japan&#8217;s equities market is vulnerable to both global and domestic factors, we could see a period of consolidation as participants weigh the impact of a stronger yen against the backdrop of a cautious recovery in global stock markets.<\/p>\n\n\n\n<p><strong>Start trading now \u2014 click <\/strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Nikkei fell 2.8% this week due to Prime Minister Ishiba&#8217;s shifting stance on rate hikes, with Kawasaki Kisen dropping 9.2% after the U.S. port strike ended. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[31,37],"class_list":["post-15246","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-indices","tag-nikkei"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15246"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15246\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}