The Nikkei is reflecting a general plunge in the global financial economy as it saw a plunge today despite hitting a high last week.
Japan’s Nikkei stock average fell on Monday, cementing a fifth consecutive losing plunge. The fall is the longest straight session this year and points to a general economic fluctuation as Wall Street was frail last week despite a strong Yen.
The Nikkei had climbed 0.53% in the morning and fell 1% in the afternoon in an unstable trading session. Comprising 225 components, the Nikkei eventually closed at 32,189.73 after falling 0.61%.73 of these components climbed while 150 plunged. Only 2 of these remained flat.
Since March, the Nikkei has climbed 27% and hit a high last week. However, the Average fell below the 25-day moving average for the first time in three months last Thursday. According to Nomura Securities Strategist Maki Sawada, “Whether or not the Nikkei can recover above the 25-day moving average in a short time is a focal point for the market.”
Performance was low among car makers as Nissan fell 2.55%, while Honda lost 1.72%. The biggest loss was Yaskawa Electric Corporation, which fell 3.44%. The company had released lower-than-expected financial results.
Earlier Projections for the Japanese Stock Market Before Nikkei Plunge
In May, Goldman Sachs (NYSE: GE) analysts were relatively bullish about the stock market in Japan. Talks of corporate restructuring is a factor the analysts hope will make Japan a desired spot for investors. According to them, a large inflow into the country’s equity market is likely, if structural reforms restore or at least strengthen the desire for investments among long-term players. At the time, the analysts’ bullish outlook may have also come from anticipating the possible ripple effects of the then-proposed increase in the US debt ceiling.
Goldman analysts had predicted that the Topix index would rise 3% to 2,200 points. Interestingly, strategists at the Bank of America were more bullish, putting the rise at 7% to 2,300 points. The strategists hoped there would be a considerable amount of share buybacks this year, which would generally spur the stock market. As of press time, Goldman Sachs’ analysts seem more spot-on as the Topix is at 2,243.33 after falling 0.51%.
Similar Plunges Across Global Markets
Generally, markets around the world are having a hard time as the global economy is struggling. On Wednesday, the European markets opened lower, with the Stoxx 600, CAC 40 Index, and the FTSE 100 recording similar plunges. The DAX fell the most at 0.53%.
On the same day, there were also recorded plunges in the Asia-Pacific region, with the Shanghai Composite, Hang Seng index, and Hang Seng Tech indexes plunging between 0.69% and 1.6%. In the US, the Nasdaq 100, S&P 500, and Dow Jones Industrial Average futures all plunged as well.
According to MarketWatch data as of press time, the Nasdaq Composite fell 0.13% to 13,660.72 from its previous close of 13,679.72. The S&P 500 index also fell, losing 0.29% from its previous close at 4,411.59 to 4,398.95.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Tolu Ajiboye
Source link
