Japan’s Nikkei 225 Tops 30,000 for First Time Since 1990
Bloomberg 2/15/2021 Gearoid Reidy and Min Jeong Lee
(Bloomberg) Japan’s Nikkei 225 Stock Average topped 30,000 yen for the first time since August 1990, as it continued its charge back up through levels not seen since the collapse of the bubble economy.
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The gauge rose 1.9% to close at 30,084.15 on Monday, amid signs an economic recovery is intact at home and hopes of progress in U.S. stimulus talks. While equities globally have hit new heights in recent months, the Nikkei 225 still needs to gain almost 30% to surpass its record of 38,915.87. That was reached in the final trading session of 1989, before the index went on to lose more than half its value in three years after the economic bubble burst.
Japan’s Nikkei 225 Stock Average topped 30,000 for the first time since August 1990, as it continued its charge back up through levels not seen since the collapse of the bubble economy.
The gauge rose 1.9 percent to close at 30,084.15 yesterday, amid signs an economic recovery is intact at home and hopes of progress in US stimulus talks. While equities globally have hit new heights in recent months, the Nikkei 225 still needs to gain almost 30 percent to surpass its record of 38,915.87. That was reached in the final trading session of 1989, before the index went on to
Long-term vision? A lack of animal spirits? Or simply poor English proficiency?
Whatever the reason, Japan’s throngs of retail investors seem reluctant to get too involved in the GameStop Corp. trading frenzy that has shaken markets worldwide.
The U.S. video game retailer so beloved of Reddit’s WallStreetBets saw less trading activity last week than the likes of C3.ai Inc. and Plug Power Inc., according to a ranking of the most-traded U.S. stocks on Japan’s market-leading online brokerage SBI Securities Co.
“Japanese investors are fairly tame,” according to Seiichi Suzuki, a market analyst from Tokai Tokyo Research Institute Co., who says retail traders today need logical reasons to invest. “If this was the 1980s, they’d be aggressively participating. But Japanese retail traders now work like institutional investors.”
The key 225-issue Nikkei average advanced 16% in 2020 despite more than ¥6 trillion of foreign net selling in the cash and futures market, according to Japan Exchange Group data.