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  • 2 Post By freeier
  • 1 Post By seirin

Nikkei - Japan Equity

  1. #1

    Nikkei - Japan Equity

    Anyone familiar? Looks like it still has room for growth.

  2. #2

    Doing a bit of research, the new leader Yoshihide Suga's cabinet has a 74% approval ratiing, 3rd highest since 1978. He's an ally with the previous leader, Abe and is most likely to continue his policies as a member of the Liberal Democratic Party. Market stability given the rest of the major markets are so volatile seems to be the best safe haven at the moment. New elections not till Sep 2021. Japan still has around a 10% gap between highs set pre-Covid 19. Seems like a decent short term punt.

  3. #3

    Given the dependancy of the Japanese market to the US, I think i'll wait.

  4. #4

    Join Date
    Aug 2020

    What are you seeing in particular for growth? Chart or a new PM?

    Though possibly not as strong in recent years, a lot of the equity movement in Japan is correlated to yen strength/weakness. Typically weaker yen will attract strong inflows leading to stronger stock market due to the export nature of Japanese businesses and the benefits that arise from a weaker currency.

    However, the last sales tax hike took a lot of wind out of the Japanese economy's sails.

    periphery831 likes this.

  5. #5

    Join Date
    Nov 2005
    Cramped island

    more growth as BOJ continues to buy up to 50 or 100% of the whole stock market... they are midway there...

    greenmark and periphery831 like this.