Live Chat

Shibuya Tokyo Japan Crosswalk

Nikkei index hits highest levels since early 1990s in sign that Japan deflation may be ending

Japan’s Nikkei 225 Stock Index has reached its highest level since the nation's bubble economy era over three decades ago, reflecting investor confidence in the country's recovery from a prolonged battle with deflation.

Closing at 33,763.18 in Tokyo, the blue-chip gauge surged 1.2%, marking a level not seen since March 1990. This ascent was driven by a rebound in technology shares and a decline in Treasury yields. The more comprehensive benchmark, the Topix index, also saw a gain of 0.8%.

Both the Nikkei 225 and Tokyo Stock Price Index (Topix) recorded an annual gain of over 25% in the previous year, marking their best performance in a decade. In 2023, these indices were among the world's top gainers, propelled by the Japanese authorities’ efforts to enhance shareholder value as long-standing deflation began to give way to mild price gains.

A historically weak Japanese yen rate, despite a recent uptick, has provided support to exporters. Optimism surrounding Warren Buffett's increased investment in Japan’s largest trading companies has also boosted positive sentiment in the world's third-largest economy.

Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank (SMTB) told Bloomberg that the Nikkei’s return to a three-decade high wasn’t that surprising, given signs of corporate governance reform and the optimism surrounding Warren Buffett’s increased investment in Japan:

“Japanese stocks have been cheap for a long time. It’s important to watch if the Nikkei can reach a record high now. The 40,000 yen level still seems quite far away”.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Currency Search
Currency
Index
Shares
ETFs
Bonds
Crypto
Commodity

Instrument

Search
Clear input
Occidental
Siemens
Morgan Stanley
GSX Techedu
Marston's
Alibaba
Skillz Inc
Macy's
Lemonade
Lululemon
Plug Power
Amazon.com
Verizon
Thermo Fisher
Mondelez
General Motors
LVMH
IAG
Cinemark
PETROCHINA
Royal Bank Canada
Anglo American
F5 Networks
Nikola Corporation
Zoom Video Communications
Air France-KLM
Comcast
UniCredit
The Cheesecake Factory
Barrick Gold
Bayer
Toro
Kuaishou
Gen Digital Inc
Tilray
Xiaomi
SMCI
Wish.com Inc
Adobe
DISNEY
Coinbase Inc
UiPath Inc
T-Mobile
Rio Tinto
Schlumberger
Invesco Mortgage
Hammerson
Volkswagen
Sartorius AG
ROBLOX Corp
ChargePoint Holdings Inc
UPS
Pinterest Inc
Continental
Jumia Technologies
Medtronic
PayPal
Twilio
Freeport McMoRan
UnitedHealth
SIG
Tesla
Lyft
Boeing Co
Annaly Capital
Santander
Teladoc
Li Auto
CrowdStrike Holdings
Deere
Fedex
Naspers
ProSiebenSat.1
Bilibili Inc
Costco
New Oriental
NVIDIA
Iberdrola
Gilead
American Express
Apple
Airbus
GoPro
Chevron
HSBC HK
Two Harbors Investment aration
easyJet
Inditex
BlackBerry
Anheuser-Busch Inbev
Deliveroo Holdings
Hubspot
Applied Materials
GameStop
British American Tobacco
Trade Desk
McDonald's
AMC Entertainment Holdings
Adidas
AIA
Bristol Myers
Novavax
TUI
Fresnillo
Shell plc (LSE)
Nasdaq
Ceconomy
Lithium Americas Corp
Rivian Automotive
Qorvo
MercadoLibre.com
Coca-Cola Co (NYSE)
HDFC Bank
Roku Inc
Infinera
Arista
Total
JnJ
Dave & Buster's
PG&E
ON Semiconductor
Diageo
XPeng Inc
ASML
Vodafone
Airbus Group SE
Campari
Telecom Italia
Glencore plc
HSBC
ZIM Integrated Shipping Services Ltd
Kraft Heinz
Spotify
Aurora Cannabis Inc
Etsy
Goldman Sachs
Norwegian Air Shuttle
Abbott
Snap
Linde PLC
Blackstone
Cellnex
Tencent
Barclays
Virgin Galactic
JP Morgan
Allianz
RTX Corp
Taiwan Semi
Wal-Mart Stores
Intel
DoorDash
Wayfair
SONY
II-VI
Norwegian Cruise Line
BioNTech
Palantir Technologies Inc
CNOOC
Cisco Systems
Electrolux
ALIBABA HK
Robinhood
Vonovia
British American Tobacco
SAP
Ford
Cameco
Peloton Interactive Inc.
Toyota
Amgen
AT&T
Infosys
Starbucks
Lloyds
Qualcomm
Canopy Growth
3D Systems
CarMax
LUCID
Eni
AMD
Target
IBM
FirstRand
Lumentum Holdings
Alphabet (Google)
Workday Inc
ASOS
Conoco Phillips
Moderna Inc
Trump Media & Technology Group
Fuelcell
MerckCo USA
Salesforce.com
Hermes
BASF
AstraZeneca
Christian Dior
Broadcom
Oracle
Vipshop
CCB (Asia)
Nio
Block
Uber
Accenture
Meta (Formerly Facebook)
Berkshire Hathaway
Wells Fargo
Blackrock
Rolls-Royce
Pfizer
Microsoft
Home Depot
Mastercard
Lufthansa
Marriott
AbbVie
China Life
Baidu
Eli Lilly
DeltaAir
Chipotle
BP
General Electric
eBay
Quanta Services
Netflix
Micron
Visa
Golar LNG
ADT
JD.com
American Airlines
Porsche AG
Palo Alto Networks
Teleperformance
Lockheed Martin
Upstart Holdings Inc
Delivery Hero SE
Airbnb Inc
Nel ASA
GoHealth
Shopify
Aptiv PLC
Bank of America
PepsiCo
Philip Morris
Exxon Mobil
Procter & Gamble
Beyond Meat
Snowflake
L'Oreal
Sea
Porsche
Deutsche Bank
Nike
Unilever
CAT
Prosus N.V.
Unity Software
Citigroup
Upwork Inc.
Vir Biotechnology

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

Japan inflation: BoJ expected to normalise monetary policy in 2024

While inflation in Japan hasn't reached the levels seen in many other Asian economies and is actually showing signs of slowing, it marks a sea change from the persistent price declines that weighed on corporate earnings in the past. The Bank of Japan (BoJ) responded to the deflationary environment by taking an ultra-loose monetary policy stance: lowering interest rates below zero and purchasing assets from the market to stimulate demand

Market indicators suggest that traders anticipate the BOJ to end its negative interest-rate policy later this year, even though speculation of an imminent move this month has subsided. While a central bank policy tightening might initially impact shares negatively as borrowing costs rise, it could benefit banks by improving lending margins.

Nikkei 225 Index: Top gainers include DeNA and Nintendo

DeNA Co. played a role in propelling the Nikkei 225's upward momentum by disclosing that its equity-method affiliate, Go Inc., a mobility company, is making preparations to go public. DeNA shares gained 9.13%, closing at 1,511.50 yen on the day.

Nintendo shares also emerged as a big gainer, with Bernstein & Co. upgrading the Japanese gaming giant from “Market perform” to “Outperform” — a move prompted by positive industry feedback about a new console, the Nintendo Switch 2, anticipated for release later this year.

Other gainers included Sony Corporation (up 1.29% at 13,340 yen), Omron Corp (+6.22% at 6,677.00 yen) and Advantest Corp. (+6.05% at 4,945.00 yen).

When considering shares and indices for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Eurozone inflation

Saturday, 23 November 2024

Indices

Week ahead: Eurozone inflation likely to confirm ECB December cut

Thursday, 21 November 2024

Indices

Asian Market Update: Hang Seng Index Falls on Baidu Slumps

Thursday, 21 November 2024

Indices

Stock Market Today: Dow and S&P 500 Post Gains Ahead of Nvidia Earnings

Thursday, 21 November 2024

Indices

Super Micro Stock Surges on Decision to Maintain Nasdaq Listing

Live Chat