TOKYO, April 29 (News On Japan) – On April 26, the Nikkei average closed 306 points higher at 37,934 yen, despite a rapidly weakening yen. Experts are noticing a shift in the typical correlation between a weak yen and strong stock performance, suggesting that the previous momentum may be weakening.
Hiroki Hiroki, chief strategist at Monex Securities, noted: “There is a sense of caution about intervention; it is unpredictable when this might occur. There is a growing call for the Bank of Japan to halt this yen depreciation, increasing speculation about a premature depreciation. interest rate hike by the BoJ These factors are slowly emerging as negative factors for the stock market.’
Over the weekend, the Dow Jones Industrial Average in New York ended up over 150 points, and futures for the Nikkei Average also recovered to the 38,000 yen level.
Regarding this week’s market movements, Hiroki further noted: “The focus is on the US Federal Open Market Committee (FOMC) meeting scheduled for May 1 and 2 (Japan time). Interest rates and stock prices are likely to have a greater impact on the Japanese stock market than domestic factors.”
Source: ANN
