November is by far the strongest month for the Nikkei index. The gains were helped by weaker yen, favourable Bank of Japan monetary policies and a slowly recovering economy. The Nikkei composite index has seen daily gains since the Pro Trump victory on the 9th Nov. The market is turning away from safe-haven assets like the Japanese Yen. The weaker currency has sent exporters stocks higher. The Nikkei was trading at 16,090 then and now it has reached highs of 18,420, rallying over +14% in a two weeks.
Japanese stock giant’s such as Toyota and Honda have been profiting from the weaker yen. Positive U.S economic reports has increased the changes of a federal rate hike in December. The Nikkei suffered a small blimp following a 7.2 magnitude earthquake in the northern part of Japan on Tuesday. However, business resumed shortly and we were seeing overall gains in the Japanese front.
There have been positive talks between Japanese PM Shinzo Abe and US president – elect Donald Trump and Abe said he was confident and “looking forward to work with him”. Regarding US exit talks on the TPP he said: “The TPP would be meaningless without the United States”. Japan would be the biggest loser if America leaves the exclusive trade pact.
Investors will be eager to see how far the bull trend will continue for.