The Nikkei 225 price action has taken a nosedive from its highest level in February. It fell to 28,432.54 which is approximately 7.41% after hitting its highest in February 16. It is currently trading at 28,317.00 Japanese Yen which is 0.78% rise from yesterday’s price action.
Japan’s Economic Gains
The Nikkei 225 has reacted to the jump in Japan’s exports. The rise in demand for cars and electronics overseas has seen the country’s economy develop an upward trend. Data shows that exports recorded a 38% high in April this year as economists expected a 31% rise. This was the fastest gain in exports since April 2010.Yuichi Kodama, chief economist at Meiji Yasuda Research Institute stated that:
“The trade data confirmed that exports were recovering steadily. Particularly car exports, which fell a lot last year, are picking up.”
The Nikkei 225 has responded to the strong US inflation numbers. According to data released last week, the US Consumer Price Index was up by 4.2% which was the fastest growth rate since 2009. Economists expected a 3.6% increase because of the Corona virus pandemic.
Japan’s manufacturing firms have hit a two year high due to the increased global exports demand. The manufacturing business was aided by improvements in machinery, chemicals, and metal products. This has been a major boost in the country’s economy since the growth in different industries has led to high demand for goods.
Japan’s service sector index recorded a first-time surge since February last year. Competition among rival companies has stiffened as each company struggles to outdo the other. This has played a key role in boosting Japan’s economy which had tumbled after the onset of the pandemic.
Top movers in Japan
One of the topmost movers in Japan is Recruit Holdings which has recorded a 3.85% increase. Among other top movers are: CyberAgent Inc, NTT Data Corp, and Toppan Printing.
Among the companies that continue to lag are: Impex Corp, Showa Denko K.K., T&D Holdings, Inc. among others.