Nikkei Drops Suddenly! What's the Japanese Market Still Afraid of?
Japanese stocks opened lower in early trading, after hitting a record high earlier in the week. The Nikkei index fell around 0.7% to 53,976.72, indicating the market is starting to "put on the brakes" after a rapid rally.
The greatest pressure came from the electronics and technology sectors. Several large caps dragged the index down, with Tokyo Electron down 3.0% and SoftBank Group down 2.9%—two names that typically serve as barometers of risk-on sentiment in Tokyo.
On the currency side, USD/JPY weakened to around 158.50, down from 159.31 at the Tokyo close on Wednesday. This yen movement makes the market even more sensitive, as the exchange rate can quickly affect exporter stocks and government policy expectations.
Investors' focus is now on one issue: the talk of a snap election in Japan. The details of the election plan and its direction are expected to change market expectations regarding stimulus, fiscal direction, and attitudes toward the weakening yen.
Therefore, market players are also awaiting comments from government officials regarding the weakening yen. This could signal a strong interest in intervention or policy. (asd)
Source: Newsmaker.id
