Nikkei 225 rises 1.10% to 64659.47 in Tokyo; yen little changed

The Nikkei 225 stood at 64659.47 at 15:25 Tokyo time on Thursday, up 705.28 points, or 1.10%, from the previous close of 63954.19. The reading came five minutes before the end of the afternoon session on the Tokyo Stock Exchange.

What happened

Japan's benchmark index gained 1.10% in the session. The previous close was 63954.19, so the advance added 705.28 points to the index level. The Tokyo Stock Exchange runs two sessions each day, from 09:00 to 11:30 and from 12:30 to 15:30 local time.

The index level is a snapshot taken shortly before the final minutes of trading. The official closing value can differ slightly from the 15:25 reading. The percent change is measured against the prior session's close of 63954.19.

In currency markets, USD/JPY stood at 157.82 at 06:45 UTC, against a previous close of 157.76. That is a change of 0.06, or 0.04%, so the pair was little changed. The yen did not move in a major way while Japanese equities advanced.

Japan consumer confidence for October

Japan also released its consumer confidence survey for October. The index came in at 35%, against a 35.1% estimate. The previous reading was 35.4%, so the index stood lower than in the prior survey.

Consumer confidence tracks how households view their income, employment and spending plans. The reading is one input for the outlook on domestic demand in Japan. The release was published at 05:00 UTC, after the Tokyo session had been under way for several hours.

The figure is a diffusion-style survey reading, so a small change from one month to the next is common. The gap to the 35.1% estimate is 0.1 percentage points. Analysts usually read such a survey together with data on wages, prices and retail sales, rather than on its own.

Reaction across the region

Other Asian markets traded differently from Tokyo on Thursday. In South Korea, the KOSPI fell 2.18%. Samsung Electronics dropped 4.13% after third-quarter profits that were described as disappointing.

Losses extended across battery, automotive and steel stocks in Seoul. Foreign investors were buying shares despite the decline. South Korean authorities pledged to monitor volatility. The won strengthened 0.72% on the day.

In India, the stock market moved higher. The Sensex gained more than 600 points and moved above 73,860. The Nifty 50 rose 175 points to approach 22,875. The Nifty Smallcap 100 and Nifty Midcap 100 also gained by up to 0.6%.

Local coverage linked the Indian advance to the Federal Reserve's decision to keep interest rates steady. The decision is a common reference point for Asian markets, because US policy affects global funding costs and currency moves. No rate level is cited here.

The three markets therefore show a mixed picture. Tokyo and Indian equities finished higher, Seoul finished lower, and the Korean won gained while the yen was little changed against the dollar. Each market reacted to a different mix of company news, domestic data and the same US policy decision.

Background and previous values

The Nikkei 225 is a price-weighted index of 225 large companies listed in Tokyo. Its move of 705.28 points in one session is measured from a prior close of 63954.19. A gain of 1.10% is a daily move, and it does not describe the direction of the market over longer periods.

The USD/JPY exchange rate expresses the price of one US dollar in Japanese yen. At 157.82, against 157.76 at the previous close, the rate moved by less than seven hundredths of a percent. That is why the pair is described as little changed.

The consumer confidence reading of 35% compares with 35.4% in the previous month. The estimate for October was 35.1%, so the reading of 35% stood just under it.

For the Korean market, the previous session is not given in the available data, so the 2.18% fall in the KOSPI is stated on its own.

Why it matters

The Tokyo move shows that Japanese equities advanced on a day when South Korean shares fell. Regional markets do not always move together, and company news can dominate on a given day. In Seoul, the focus was a large company's quarterly profit. In Tokyo, the index rose without a large currency move.

The exchange rate matters in Japan because it affects the yen value of overseas earnings for exporters. USD/JPY at 157.82, little changed from 157.76, means the currency showed no large swing during the session. No company-level detail for Tokyo is available, so the drivers of the 1.10% gain are not identified here.

The consumer confidence figure adds a household-side data point. A reading of 35%, down from 35.4%, is one monthly figure and is best read with other indicators on spending and income.

The Samsung Electronics episode also shows how a single heavy-weight stock can move a national index. A fall of 4.13% in one large company came with a fall of 2.18% in the KOSPI, and the losses spread to battery, automotive and steel shares. The pledge by authorities to monitor volatility shows that the move drew official attention.

What to watch next

The next Tokyo session opens at 09:00 local time. Market participants will follow the Nikkei 225 relative to its level of 64659.47 and USD/JPY relative to 157.82. They will also follow how South Korean markets trade after Thursday's decline of 2.18% in the KOSPI.

Attention also stays on the Federal Reserve's decision to keep rates steady, and on how Asian markets continue to react to it. Further company earnings across the region will add detail on corporate profits. Samsung Electronics' third-quarter profit already shaped trading in Seoul on Thursday.

The next monthly consumer confidence survey in Japan will show whether the 35% reading marks a change in household mood. Until then, other releases on activity and prices will give more context for the domestic economy. Regional currency moves, including the won's 0.72% gain, will also stay in view.