On March 4, the Nikkei 225 index opened nearly 1% higher, surpassing the 40,000-point mark in one fell swoop. **Compared to last Friday**19841 points, an increase of 05% at 4010923 o'clock. This is the second time that Japan** has broken through the key point after regaining its all-time high in December 1989 on February 22.
On the 4th, in Tokyo, Japan, a monitor shows the ** of the Nikkei Average.
On the news side, there were also some exciting rumors in the Japanese market last weekend. Japan's Kyodo News Agency reported last Saturday, citing people familiar with the matter, that Japan is discussing formally announcing that its economy has successfully overcome deflation.
According to people familiar with the matter, Japan** will carefully study the results of the labor negotiations and the inflation outlook this spring to determine whether Japan has the conditions to declare a complete transition from deflation. Analysts noted that the official statement, while symbolic, is expected to mean that a major growth bottleneck for the Japanese economy has been removed.
Against the backdrop of the continued depreciation of the yen, foreign capital has also continued to pour into Japan**. According to Bloomberg, from the beginning of the year to February 22, these funds accounted for about 2 3 of the trading volume of the Tokyo ** exchange. In January alone, foreign investors had a net ** of $13.8 billion in Japanese stocks, the seventh largest monthly ** since records began in 1982.
Many foreign investors remain bullish on Japan for now**. BlackRock, the world's largest asset manager, and Amundi Asset Management, Europe's largest asset manager, both recently expect earnings growth and changes in corporate governance to keep Japanese stocks strong.
The International Monetary Fund (IMF) noted that once the negative interest rate policy ends, the Bank of Japan may gradually raise interest rates and tighten monetary policy, which may lead to a decline in domestic liquidity, higher borrowing costs, slower economic growth, and less inflationary pressures. These factors could weaken Japan's** earnings expectations and valuations, triggering investors' risk aversion and leading to corrections and volatility.
Comprehensive report by Beijing Business Daily.