02/15/2021, 10.06
JAPAN
Send to a friend

Tokyo Stock Exchange sees 31-Year high (Despite Pandemic)

The Nikkei index exceeds 30 thousand points. Negative interest rates and large monetary liquidity favour the main world markets. Driven by GDP growth, the launch of vaccinations and an end to political uncertainty in the US. Doubts about the post-Covid prospects of the Japanese economy.

Tokyo (AsiaNews / Agencies) – Tokyo’s Nikkei index exceeded 30 thousand points this morning for the first time in 31 years. Thanks to a huge amount of liquidity and negative interest rates, the main world markets continue to report earnings. The figure is in contrast with that of the real economy, which is struggling to recover from the coronavirus crisis.

For analysts, the Nikkei rebound is due to the positive data on the Japanese GDP in the last quarter of 2020: + 3% compared to the previous year; + 12.7% compared to the period July-September.

The good news on the vaccine front has also boosted markets. Yesterday, the Ministry of Health authorized the use of the first vaccine, the American Pfizer. The vaccination campaign will start this week with roll out for health professionals.

Japanese investors also welcome former US President Donald Trump’s acquittal from impeachment. In their view, the rapid closure of the proceedings will allow the Biden administration to accelerate the adoption and implementation of the aid plan against the effects of Covid-19, which is worth 1,900 billion dollars (1,566 billion euros).

With a growth of 9%, the Nikkei list is one of the best performing since the beginning of the year (the US Dow Jones index stopped at 3%).

Despite this the prospects for the Japanese economy remain uncertain. Due to the pandemic, the national GDP lost 4.8% last year. In December, the government of Yoshihide Suga took action by injecting 73,600 billion yen (577 billion euros) into the system, bringing the total anti-Covid stimulus to 315,550 billion yen (2,473 billion euros).

According to several observers, the country's room for improvement is limited. It relies too much on "outdated industries," and lacks high-growth hi-tech giants like Apple and Google in the US, and Alibaba and Tencent in China.

TAGs
Send to a friend
Printable version
CLOSE X
See also
Tokyo economy resists rise in new Covid-19 strains
02/03/2021 09:35
US investment fund worth 6 trillion leaves Hong Kong and Tokyo and moves to Shanghai
27/08/2020 10:54
Covid-19, Tokyo Olympics confirmed in 2021
16/11/2020 09:54
Pound: due to Coronavirus Tokyo Olympics postponed to 2021
24/03/2020 10:02
Asian markets fall tracking US pessimism
20/11/2008


Newsletter

Subscribe to Asia News updates or change your preferences

Subscribe now
“L’Asia: ecco il nostro comune compito per il terzo millennio!” - Giovanni Paolo II, da “Alzatevi, andiamo”