After the BOJ released its Summary of Opinions, the yen fell to the upper ¥157s against the dollar. Bonds weakened as yields rose, while the Nikkei average extended its gains.
In Japan's market on 1 October, the yen fell to the upper ¥157s against the dollar. With the dollar firm on signs of strong US consumer spending, yen selling increased following the release of the BOJ's Summary of Opinions from its monetary policy meeting and the Tankan. Bonds fell and yields rose, while the Nikkei Stock Average extended its gains.
The BOJ's Summary of Opinions from its September monetary policy meeting included a view that it was necessary to pursue appropriate policy management to prevent prices from continuing to rise excessively. Meanwhile, government representatives attending the meeting called for a thorough assessment of the cumulative effects of previous rate hikes. In the short term, the policy rate was raised to 1.25%, its highest level in 31 years.
The Tankan showed the DI for large manufacturers at +24, an improvement from the previous survey, but below the market expectation of +25. The yen briefly fell to ¥157.77. Chief Market Strategist Moroga (諸我) said the Summary of Opinions contained no market-moving material. The yield on the newly issued 10-year Japanese government bond rose to 3.085%. The Nikkei was boosted by receding expectations for US rate hikes and buying of AI and semiconductor-related stocks.