Japan Nikkei Crosses 35,000 Mark After 34 Years.

Japan Nikkei 225 has crossed the 35,000 mark for the first time in 34 years reaching 35,049.86 today. It was at 38,915.87 in 1989. It never reached the bar again till now. However, the index has made a record by reaching beyond 35,000 after 34 years. There was a growth of 1.77% or 608.14 points. The market closes at 35,049.89 today. The investor’s hopes are rising again for the Japanese market. Many factors are contributing to the growth of Japan’s Nikkei. We will share details about Japan’s Nikkei 225 boom and the reasons behind it below.

Japan Nikkei
Image credit: Google and Nikkei

Japan Nikkei 225 Reaches Above 35,000 After 34 Years:

 

Japan’s share market lost its importance among investors over the past few years. However, it has now crossed 35,000 for the first time after 34 years. The investor’s spark is now returning. Everyone’s attention is on the Nikkei. Whether it will go up or fall down from the point. Nikkei closed previously at 34,441.72. The market has seen an increase of 1.77% or 608.14 points. Nikkei closes at 35,049.86 today.

It expects to make further progress as well. Warren Buffet was already aware of the growth. He started contributing to Japanese stocks in 2020. Nikkei records 25,748.10 as the 52-week lowest. While it reached 35,157.56 the 52-week highest. The average volume is 101,664,406. The market has been above 30,000 since November 2023 beginning.

Warren Buffet Japan Investment: Warren Buffet on Japan Nikkei 225:

Wall Street firms have also shown their interest in Japan’s growing index. Apart from that, Warren Buffet, the legend of long-term investing, made some Japanese investments in 2020. There were trading houses like Itochu, Sumitomo, Marubeni, Mitsui, and Mitsubishi, which Warren’s Berkshire Hathaway bought three years ago. He mentions that he got them at good prices. They plan to exceed the stake up to 9.9%. The current falling of Europe and the US into a recession is also attracting investors to Japan’s much more stable economy. Other Asian countries as well are also getting opportunities to grab foreign investors. Japan has currently the majority of its investors as foreign investors.

Why Japan’s Stock Market Is Rising?

Japan’s stock market has several reasons for the rise. The major reason is the economic difficulties in the US and Europe. The customers are spending less there with a tight inflation. The investors earning strong currencies divert to the Japanese market. The Japanese Yen has led to deflation over the past few years. The depreciation of the currency made the exports cheaper. It is also one of the important factors impacting Japanese stock performance. Warren Buffet’s statements on his early investment in the Japanese stocks also contribute to it. These are the major reasons for the rise of the Japanese stock market. Continue reading with Charcha Times for more such updates.

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