STRONG CORPORATE EARNINGS PUSHED JAPAN’S STOCK INDEX 30-YEAR HIGHS

09.02.2021
Market News

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Japan's Nikkei Index surged 29,000.00, the highest jump in 30 years. The surge in the Japan index was driven by strong corporate sector earnings reports convincing investors of the economic recovery in Japan for 2021.

The Japanese Nikkei index points rise was the highest since August 1990, climbing as high as 600 points, or about 2%, approaching 29,600.00. The Nikkei Index, which covers 225 leading companies in Japan, the majority recorded a positive increase.

External factors such as the situation in the United States where the $ 1.9 trillion USD stimulus package injected into the market also led to investor confidence to be actively involved in the market after being disturbed by the Covid-19 pandemic situation last year. Investors are seen to be active again in the stock market as well as boosting some global index markets at this time.

Among the companies that reported an increase in revenue in Japan were Kobe Steel and Nippon Steel, steel manufacturing companies. Both shares of the company reported a 17% and 10% increase in share prices. Apart from that, companies like Toyo Seikan Group Holdings and Lixil Group also recorded an increase in their shares in the market.

The strengthening of the Japanese stock market also contributed to the resurgence of the Yen price in the market. The yen opened higher against the USD this week and is currently trading at the 105.25 level. The USD / JPY pair is likely to drop to a lower level, but the Bank of Japan has hinted that the Yen should be controlled not to drop below the 100.00 level against the USD.