Japan’s Nikkei Records Historic Annual Surge, Reaching Highest Levels Since 1989
Japan’s Nikkei share average concluded the fiscal year with an unprecedented rise, soaring 12,328 points – the largest absolute increase ever recorded for the index. This remarkable rally saw the index reach successive record highs this quarter, surpassing levels last seen during Japan’s 1989 bubble economy. Key factors fueling this surge included improved corporate governance, increased foreign investment amid a weakening yen, and expectations of continued loose monetary policy from the Bank of Japan.
Japan’s Finance Minister Flags Yen Speculation Amid Decline
Japanese Finance Minister Shunichi Suzuki indicated on Friday that speculative trading could be driving the recent yen declines, hinting at possible market intervention to curb excessive currency falls. Suzuki emphasized monitoring the pace of the yen’s movements rather than specific levels, reiterating Tokyo’s readiness to counteract disorderly market trends. The yen’s downturn, exacerbated by the Bank of Japan’s policy stance, has reached a 34-year low against the dollar, complicating economic conditions by increasing import costs and affecting consumption and retail profits.
After a spirited rally post-IPO, Reddit shares have plummeted, closing at $49.32, below their initial NYSE trading day close. The social media giant’s shares dipped significantly after Hedgeye Risk Management labeled them “grossly overvalued.” This decline coincided with Reddit CEO Steve Huffman and COO Jennifer Wong selling substantial shares. Despite a strong start to the week, the stock faced volatility, with New Street Research maintaining a cautious stance on its future performance.
