News & Insights

In April the Japanese TOPIX and Nikkei 225 indices faced declines, primarily driven by the downturn in U.S. semiconductor stocks and escalating tensions in the Middle East. In particular, the Nikkei 225 experienced a significant drop mid-month, although by the end of the month it had begun to recover as foreign investors increased their cash stock purchases, alongside active retail investor participation.

In March Japanese equities continued their strong performance. The Nikkei 225 briefly reached the 41,000 yen level before returning to hover around the 40,000 yen mark. Gains were centred around large cap value stocks with foreign investors remaining net buyers of Japanese equities for the third month running.

[EXTERNAL LINK] SuMi TRUST's Chief Strategist, Katsutoshi Indome's comments on the Bank of Japan's monetary policy shed light on the direction of Japan's economy.

In February Japanese equities performed unprecedentedly well, bringing the Nikkei 225 to a historical high of 39,426 yen on the 27th February. This surge was primarily driven by positive corporate earnings announcements and the expectations for continuous monetary easing policies. Foreign investor trading volume continued to be high for the second month running, which was a supporting factor for the market.