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A pedestrian spotted an electronic stock board in Tokyo showing Nikkei 225 stock.
Kyoshi Ota / Bloomberg
Japanese stocks hit a 31-year high on Tuesday. Certainly, global markets are in a good mood as investors continue to rally for economic recovery. But the global economy is also serving Japan well.
This
Nikkei 225
It rose 714 points, or 2.7%, on Tuesday. The index stabilized at 27,568 and briefly touched 27,601, the highest level since 1989.
Other global stocks popped on Tuesday, but less so. This
Asia Dr.
The index is up 1.6%
Hang Seng
The index increased by 1%, and
Stokesx Europe 600
The index rose about 1%. The US stock market has been trading for the past several trading sessions, but soon broke with a break on Tuesday.
Dow Jones Industrial Average
About 100 points down in the midday trade. Cowid-1 cases are on the rise around the world, financial stimulus measures are supporting consumers and industries, and many biotech vaccines are on the way to mass distribution.
But the Japanese economy and markets have seen some recent growth. Companies on the Nikkei are exposed to appropriate geographies and regions to benefit from growth.
Financial stimulus is kicking in gear in key areas around the world. U.S. It has passed a $ 900 billion fiscal stimulus bill that will provide assistance to individuals and small businesses. The third round of direct payments was confirmed by South Korean President Moon Jae-in, which will pay individuals and small businesses 9. 9.3 billion, or about .5 8.5 billion. Companies on the Nikkei 225 see an average of about 13% of their revenue from the U.S. and 2.8% from South Korea.
It is more open than other indexes in the world. Companies on the Hang Seng Index see %% of revenue from the US and almost nothing from South Korea. Stoxx companies00 companies see about 50% of revenue from the U.S., but only %% of the index is in the consumer cycle, which improves the economy and benefits when consumers return to pre-epidemic levels or higher costs. That contact is another key for the Nikkei: About 18% of the Nikkei 225 companies are consumer bicycle companies.
Moreover, Japan is an export-oriented country that wants to weaken its currency to make its exports globally competitive. The yen, however, has strengthened against the dollar and the renminbi, both of which are used to buy Japanese exports. However, the main currency movement for Japan has been overshadowed by the bright global economic environment, says Quincy Crosby, Prudential Financial’s chief market strategist. Of Baron.
Japan’s recent strength has attracted significant investors. For one, the Buff Run Buffett made a surprise bet on the country in September.
Jim Rogers, a Singapore-based investor who co-founded the legendary Quantum Fund with George Soros, described Japan’s monetary policy as a major force in the country’s bull market – a view he reiterated on Tuesday. The head of Bank Japan f Japan goes to work every morning like a good Japanese bureaucrat and can print money as fast as (‘unlimited’ is his word). He then buys stocks, bonds and ETFs as quickly as possible. He said he owns a Japan ETF.
Rogers says it helps that there is a new government in Japan, led by Prime Minister Yoshihid Suga. “New governments always do things to make people happy. This is no different. “
Write to Jacob Sonshine at [email protected]
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