The Nikkei average in Japan performed well in trading as compared to other Asian stocks on Tuesday, August 13, 2024. Asian stocks stayed within a narrow range and ended the day without much change on Tuesday. Investors were waiting for key U.S. economic data this week to get more clues about the Fed’s interest rate plans. Japanese stocks made strong gains after a long holiday weekend.

Gold prices fell in anticipation of important U.S. producer and consumer price inflation data scheduled for release later in the week. Meanwhile, oil prices in Asian trading dropped after surging by over 3% during the previous U.S. trading session due to increased tensions in the Middle East.

Japanese markets experienced significant gains, continuing the recovery that began late last week after the Bank of Japan conveyed hawkish signals.

The Nikkei average surged by 3.45% to reach 36,232.51, while the broader Topix index increased by 2.83% to 2,553.55. Export-oriented companies benefited from a weaker yen, leading to 2-3% gains for automakers like Nissan, Honda Motor, and Toyota Motor.

Technology stocks, including Tokyo Electron, Screen Holdings, and Advantest, witnessed a surge of 6-8% following a boost from Nvidia Corp. to the Philadelphia Stock Exchange Semiconductor Index. SoftBank Group, a technology investor, also rallied by 3.8%.

The Bank of Japan reported on Tuesday that Japan’s producer price inflation slightly accelerated in July, reaching its highest level in nearly a year. The producer price index rose by 3.0% year-over-year in July, following a 2.9% increase in June. Additionally, producer prices rose by 0.3% in July, up from a 0.2% increase in June.

Preliminary data from the Japan Machine Tool Builders Association (JMTBA) revealed that Japan’s machine tool orders rose for the third consecutive month in July 2024, driven by a surge in foreign demand.

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