Another Disastrous Day for the Nikkei
The Nikkei225 had another disastrous day today as the index tumbled over 757 points, fishing down 4.82%, and extending its multi-day losing streak.
The index is now down well over 2000 points for the week, leaving it down 15.12% on the year.
Japanese automakers found themselves down several percent again today, with Honda (TYO:7267), Nissan (TYO:7201) and Toyota (TYO:7203) down 3.1%, 3.8% and 5.1% respectively. All of these companies are down double digits for the year.
Japanese financials traded mixed today, with MUF (TYO:8306) trading up 0.5% and SMF (TYO:8316) down 1.26% and Mizuho Financial (TYO:8411) down 1.24%. Japanese banks and financial institutions are finding it increasingly difficult to retain value this year, as the BoJ has implemented negative interest rates on deposits.
Blue chips like Canon (TYO:7751), Denso (TYO:6902) and Bridgestone (TYO:5108) all traded down several percent, shedding value in the midst of uncertain economic conditions and a slowing global forecast.
Is the Nikkei headed for disaster, or is this just an extended sell-off as we saw in the beginning of the year? Nobody can say at this point, but the Nikkei is under increasing strain and the BoJ is arguably out of ammo.
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