TOKYO, Apr 29 (News On Japan) –
On April 26, the Nikkei Average closed up 306 factors at 37,934 yen, regardless of a quickly weakening yen. Experts are noting a shift within the typical correlation between a weak yen and robust stock efficiency, suggesting that the earlier dynamic could also be weakening.
Hiroki Hiroki, Chief Strategist at Monex Securities, commented, “There’s a sense of caution about intervention; it’s unpredictable when it might occur. There is a growing call for the Bank of Japan to halt this yen depreciation, which is increasing speculation about an early interest rate hike by the BoJ. Slowly, these factors are emerging as negatives for the stock market.”
Over the weekend, the Dow Jones Industrial Average in New York completed up by greater than 150 factors, and futures for the Nikkei Average additionally recovered to the 38,000 yen stage.
Regarding this week’s market actions, Hiroki additional famous, “The focus is on the U.S. Federal Open Market Committee (FOMC) meeting scheduled for May 1-2 (Japan time). The outcomes of this meeting and the subsequent movements in U.S. long-term interest rates and stock prices are likely to have a more significant impact on the Japanese stock market than domestic factors.”
Source: ANN