Nikkei 225 Analysis: December 28, 2023

Nikkei 225 analysis
Share

Bloomberg – The Nikkei 225 index experienced a slight downturn, decreasing by 0.42% to settle at 33,540. Similarly, the broader Topix index also saw a decline, dropping 0.14% to end at 2,362. This shift occurred on Thursday December 28, reflecting a slight retraction after earlier gains. Such movements in the index are critical for Nikkei 225 analysis.

A key factor influencing these indices, particularly the Nikkei 225, is the fluctuating value of the yen. A rise in the yen’s value poses challenges for Japan’s export-centric economy. It makes local products more expensive for overseas buyers, affecting corporate profits. This change also impacts foreign investments in Japanese assets, as they become more expensive.

Nikkei 225 Analysis

Nikkei 225 Analysis – Daily Chart

Nikkei 225 Analysis: 2023 Surge & Key Factors

The year 2023 has been remarkable for the Nikkei 225 index and JP225. The Nikkei surged by approximately 28.5%, while the Topix index also saw a significant increase of around 25%. This upward trajectory was largely fueled by a dovish stance from the US Federal Reserve and the Bank of Japan regarding monetary policies. Additionally, strong performances in the technology sector played a pivotal role in this growth.

However, specific companies within these indices experienced notable declines. Companies like Kawasaki Kisen, Nippon Yusen, and Japan Tobacco saw significant drops in their stock values. Major players such as Toyota Motor and Advantest were not immune to these downturns either.