[Truth] The Nikkei Stock Average fell the second largest in the past
The impact of the US stock market
Major stock indices fell drastically in the US New York stock market the day before. In particular, the Dow Jones Industrial Average fell by over 700 dollars at one point, and the closing price also depreciated by 494.82 dollars (1.21%). This is because the index showing business confidence in the manufacturing industry fell short of market expectations, and concerns about economic deceleration intensified. In response to this trend, the Tokyo market also became drastically lower right after the start of trading.
Major stock indices fell drastically in the US New York stock market the day before. In particular, the Dow Jones Industrial Average fell by over 700 dollars at one point, and the closing price also depreciated by 494.82 dollars (1.21%). This is because the index showing business confidence in the manufacturing industry fell short of market expectations, and concerns about economic deceleration intensified. In response to this trend, the Tokyo market also became drastically lower right after the start of trading.
Strong yen trend
The trend of yen appreciation and dollar depreciation continues in the exchange market, and 1 dollar is traded in the first half of the 149 yen range. The rapidly rising yen had an adverse effect on export-related stocks and accelerated the decline in the Nikkei Average.
Changes in Japan's monetary policy
1 End of negative interest rate policy
In 2024/3, the Bank of Japan ended its negative interest rate policy and raised short-term interest rates to 0-0.1%. This is the first rate hike in 17 years. The background is that wage increases have progressed, and the outlook for achieving the price stability target of 2% has improved.
2 Impact on the domestic economy
The end of the negative interest rate policy has led to an increase in borrowing costs and an increase in import prices, which is particularly burdensome for small and medium-sized enterprises in the service sector. Also, due to the slump in the Chinese economy, risks to Japan's export industry are also increasing.
1 End of negative interest rate policy
In 2024/3, the Bank of Japan ended its negative interest rate policy and raised short-term interest rates to 0-0.1%. This is the first rate hike in 17 years. The background is that wage increases have progressed, and the outlook for achieving the price stability target of 2% has improved.
2 Impact on the domestic economy
The end of the negative interest rate policy has led to an increase in borrowing costs and an increase in import prices, which is particularly burdensome for small and medium-sized enterprises in the service sector. Also, due to the slump in the Chinese economy, risks to Japan's export industry are also increasing.
Selling tech stocks and financial stocks
Sales to high-tech stocks and financial stocks, which contributed greatly to the index, were conspicuous. In particular, high-tech stocks such as Tokyo Electron, Advantest, and SCREEN Holdings fell drastically. Furthermore, the financial sector also declined drastically, and securities, insurance, banks, etc. ranked high in the rate of decline.
Profit-taking sales
In response to recent stock appreciation, sales that once determined profits also overlapped, leading to drastic stock depreciation.
I explained what happened and what will happen in the future on YouTube.
From YouTube
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
