Financial experts: Nikkei reaches strongest January since 1998 - all-time high in sight

Financial experts: Nikkei reaches strongest January since 1998 - all-time high in sight

According to a report by www.n-tv.de The Japanese stock market is looking forward to its strongest start to the year in 26 years. The Nikkei index rose 0.6 percent to 36,287 points, while the Topix index closed one percent higher at 2,551 points. The growing interest of foreign investors abroad, who are increasingly investing in Japan in view of the weakening Chinese economy, drove the Nikkei up by almost eight percent in January. Analysts assume that investors are already eyeing the all-time high of 38,957.44 points from 1989.

The strong performance of the Nikkei index in January 2024 could have a positive impact on the Japanese financial market. Increased interest from foreign investors could result in increased capital inflow into the market. This in turn could lead to further price increases and stimulate the economy in Japan. In addition, positive developments in the stock market could increase consumer and business confidence, which in turn could have a positive impact on consumption and investment. However, there is also a risk of the market overheating, especially if prices continue to rise significantly. In this case, there could be a correction or even a bubble.

It is important to continue to closely monitor the development of the Nikkei index and investor reactions in order to identify potential risks at an early stage and take appropriate measures. The increasing volatility in Chinese stock markets and the impact on the Nikkei index should also be closely monitored to assess possible risks for the Japanese market.