※Translated with Notion AI. (Plus version)
After reaching 40,109.23 at the close of trading on the 4th, the Nikkei 225 fell below 40,000 again to 39,688.94 on the 8th.
One of the reasons for this is the growing possibility that the Bank of Japan will finally decide to lift negative interest rates at its meeting on March 19th.
This means that after the Nikkei 225 hit a 34-year high, an interest rate hike (the first in 18 years since 2006) is imminent.
There is no doubt that the Japanese market is at a major turning point.
It is understandable that there are concerns that if the Bank of Japan’s massive easing finally reaches an exit, it may adversely affect the stock market.
On February 8th, Bank of Japan Deputy Governor Uchida stated that “it would be natural to discontinue” purchasing equity ETFs, not just raising interest rates, when adjusting massive easing.
Will the current stock price boom be short-lived due to the Bank of Japan’s policy change?
I don’t think so.
