Tokyo stock exchange on the rise thanks to the decline of the yen and Wall Street

  •   04/08/2020 - 11h26
  •   DEHOUI Lionel

The situation of the Paris Stock Exchange remains more or less in balance in this first week of August. But the question of the investors is at the level of the Asian Stock Exchanges and especially the evolution of Tokyo. Indeed, the Tokyo Stock Exchange ended the session up this Monday, August 3, 2020. It benefits from the yen which became again cheap compared to the dollar. Also, the gains recorded on Wall Street on Friday encouraged it.

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Tokyo stock exchange on the rise thanks to the decline of the yen and Wall Street
Image copyright: Dick Thomas Johnson - Flickr

Japanese indices

The mood on the Japanese stock market is marked by the rebound of its flagship index, the Nikkei. The latter gained 2.24% to 22,195.38 points, representing six consecutive sessions of declines. At the same time, the expanded Topix index made a net gain of 1.78% to 1,522.64 points. It should be noted that Wall Street closed July with a bullish session. At the end of last Friday's session, the New York Stock Exchange accelerated.

A situation whose origin remains largely the performance of Apple and Facebook who have set new records with their shares. On the other hand, the significant decline that the yen has suffered before the dollar since Friday has also been favorable to the various values of the Japanese market. These are the exporting stocks on the Tokyo Stock Exchange which in turn benefited from the new acceleration of Chinese manufacturing activity in July.

Note: It was indeed an independent index released earlier this week that indicated this new acceleration. For its part, the Chinese authorities confirmed yesterday the 0.6% drop in Japanese GDP in the first quarter of the year 2020. It must be said that this figure remains intact compared to the previous estimate.

 

A rising stock in Tokyo

In such an atmosphere, all the economic sector leaders have noticed how much the latter is in technical recession. Even before the current health and economic crisis (in Q4 to be precise), Japanese GDP fell by 1.9%. Since then, the various stocks on the Tokyo Stock Exchange have been changing according to the trends in its market. On Monday, for example, the SoftBank Group stock rose 5.1% to 6,932 yen.

On the other hand, the takeover of the ARM group (SoftBank Group) by NVIDIA is still in the news and would even be on a good road. According to several media reports, negotiations are at an advanced stage in the ARM acquisition. Let us recall in passing that ARM designates a British manufacturer of microprocessors and acquired in 2016 by SoftBank Group for an amount of 32 billion dollars. The two groups involved would aim for common ground in the coming days.

Note: Let us underline that Nvidia is a giant American group which built a reputation in the field of chips as well as graphic cards.

 

Another value, but falling

Unlike SoftBank, which made a breakthrough on the Tokyo Stock Exchange, Seven & I Holdings dropped 4.8% to 3,052 yen. This follows its announcement of an agreement to acquire the famous American chain of Speedway gas stations. The deal involves more than $21 billion. According to the investors, this amount remains quite high.