Japanese stocks are currently celebrating a happy new year by leading the surge in this year’s first trading. Nikkie increased 2.5 percent due to exponential financial growth and Topix increasing up to 2.36 percent. Asian stocks are rising this 2017 after setbacks from U.S.A.’s boosting economy last year and resulting in an annual growth of U.S.’s stocks even with a sluggish year ender.
Nikkie Stock is at 13-month closing a rose 2.5 percent this first trading, the notable factors are financial gains and the power of the export-oriented stocks. It is a first, since 2003, that Nikkie’s index closed up on the first trading day of the year. While the Topix also received a 2.36 growth just after the Nikkie Japan Manager Index rose to 52.4 in December, figures above 50 means an expansion in the sector while below 50 means a contradiction.
While other Japanese companies and Japanese automaker exporters were also higher due to the weaker yen. Shinsei Bank which grew 4.1 percent, Mitsubishi with 3.5 percent increase, Honda Motor also gained a total of 4.6 percent and Mitsubishi Motors ending up with 4.4 percent of total growth. The weaker yen suggested an increase in the value of profits earned overseas when it is repatriated causing Japanese exports to be more affordable to foreign buyers.
Asian Stocks On A Roll This 2017
Along with Japan’s gains are other Asian markets surge as well, Singapore’s Straits Time Index was up by 1.1 percent, and the FTSE Bursa Malaysia Index also saw an increase of 0.55 percent. According to analyst Masashi Murata, “Today was the first day of trade in Japan and market participants are reacting to the good news over the global economy,” Murata covers regional and emerging markets for Brown Brothers Harriman. According to private researches, Japan’s manufacturing sector is seeing a sign of recovery with the increasing domestic and global demand.
U.S. economic boost has greatly influenced the global economy causing several stocks such as Asian and European stocks to trade higher earlier this year. Europe’s and China’s economic positivism also proved to be a factor for the strong start for the year with their industry group higher in their economic data. Nicholas Teo said in a note, “Whether this rally has the legs to continue to go the distance, (sic) or just a ‘ceremonial’ kick-off to this start of the year, will depend on the next series of catalysts that may be presented,” Teo is a trading strategist at KGI Securities Pre Ltd.
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