**: Shanghai ** newspaper
On Tuesday, February 13, Beijing time, all major ** in Asia closed in the red, among which the performance of Japan** was particularly outstanding.
On the same day, Japan's ** opened higher throughout the day, approaching the ** Nikkei 225 index once stood above the 38,000-point mark, continuing to hit a new high since 1990. As of **, Nikkei 225 Index**289% at 3796397 points; Japan's Topix Index**212% at 261203 o'clock. As of now, the Nikkei 225 index is 38957 from its all-time high in the late 80s and early 90s of the last century44 points is only about 2% of the difference.
South Korea's KOSPI Index** was reported at 264964 points, **112%γ
Also positive was the FTSE China A50**. As of press time, the FTSE China A50** rose by 161%, after its intraday gain was close to 2%.
Chip stocks soar The Nikkei 225 index is just one step away from its all-time high.
On Tuesday, Japan** rose sharply at the open, continuing to hit a new high since 1990. As of **, the Nikkei 225 index closed up 289% at 3796397 points; Japan's Topix index closed up 212% at 261203 o'clock.
Since the beginning of 2024, Japan's ** performance has been outstanding, and the Nikkei 225 Index, as Japan's ** benchmark, has continued to refresh its highest level since 1991, with a cumulative increase of 13 since the beginning of the year45%γAt present, the Nikkei 225 index is 38957 from the all-time high of the late 80s and early 90s of the last century44 points is only about 2% of the difference.
On the disk, boosted by the overnight chip leader Nvidia's stock price and the strong performance report of chip design company ARM, Japan's ** chip stocks strengthened across the board, of which SoftBank Group rose 6%, which is the third consecutive trading day that SoftBank Group's stock price has risen sharply. Recently, the stock price of ARM, a chip design company in the United States, has been hot, with a cumulative increase of nearly 100% in the past three trading days. SoftBank Group holds about 90% of ARM's shares.
Tokyo Electron jumped 1333%, the stock price hit an all-time high intraday after the company boosted revenue for fiscal 2023**. In addition, Sony and Toyota rose sharply respectively.
Driven by Japan's ** chip stocks, South Korean chip stocks also performed well on Tuesday, with SK hynix ** rising 49%γ
The Asian market also performed positively in the Asian market on the day, and the FTSE China A50** may be more enlightening for the A** market. As of press time, FTSE China A50** rose by 161%γ
International capital influx into Japan** Yen appreciation may be a potential headwind.
According to the analysis of institutional views, multiple dynamics will drive Japan** to rise again at the beginning of 2024: the Bank of Japan's loose monetary policy, the depreciation of the yen, the governance reform of the Tokyo ** Exchange, and the influx of global funds into ......
From the perspective of capital, the influx of international funds is undoubtedly the key to driving the market upward. Almost all major international investment institutions are underweight Japan** by 2023 due to negative interest rates, low inflation, and low growth rates. In addition, the trading volume of foreign capital in Japan** is higher than that of local funds, and the flow of foreign capital has a greater impact on Japanese stocks. According to Ping An** statistics, as of 2021, the number of foreign investors in Japanese exchanges has risen to about 30%, and foreign investors account for more than 60% of the trading volume. Since 2005, the size of foreign investors' interests in Japan has tended to be in line with the Nikkei 225 Index. It can be seen that the trend of foreign capital affects the performance of Japanese stocks to a large extent.
Since Warren Buffett publicly stated that he would increase his weight on Japan** in April 2023, the Nikkei 225's rally has continued to strengthen. The TOPEX specifically mentioned the concern about broken stocks, i.e., price-to-book (PB) ratios that have been below 1x for a long time**, and urged these broken shares to disclose improvements that mean that listed companies must focus on shareholder value.
However, the yen could be a potential headwind to Japan's upside in 2024. The Fed's interest rate cut expectations have been heating up since December last year, and the yen has been ** against the dollar. However, the dollar index has recovered since January 2024.
D**id Scutt, a senior strategist at Forex.com Group in the United States, said that the trend of the yen is generally inverse to that of Japan**, and investors need to be wary of the impact of the yen's appreciation.
CITIC** expects Japan's economy to continue to grow moderately in 2024. The Bank of Japan (BOJ) will exit negative interest rates in the first half of 2024, which could put some pressure on the valuation of yen-denominated assets and boost the yen. Therefore, CITIC is cautiously optimistic about Japan, but believes that the spatial certainty of the US dollar-denominated Japanese stock index** is relatively stronger.