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Asahi Shimbun
4 days ago
- Business
- Asahi Shimbun
Analysts react to Japan's Nikkei scaling record high
Traders clap as the Nikkei index closes at an all-time high, at the dealing room of Nomura Securities in Tokyo on Aug. 12. (REUTERS) Japan's Nikkei gauge of blue-chip stocks powered to a record high on Tuesday, taking its cue from all-time peaks scaled by many global markets this year. Here are analysts' comments about the rally in Japanese stocks: SHOICHI ARISAWA, GENERAL MANAGER OF THE INVESTMENT RESEARCH DEPARTMENT AT IWAICOSMO SECURITIES, TOKYO "The speed of the rally in the past few days is too fast. It is surprisingly fast particularly because we have not seen any new positive market-moving catalysts. "Japanese shares were lagging behind other countries, particularly in Europe. European shares rose because investors shifted their focus away from the U.S. "Japan has become a target now because the country's corporate outlook is good and the impact of U.S. tariffs seems not as serious as the market had expected. There will be more companies which will revise up their outlook due to the limited impact of the U.S. tariffs. The yen remains weak, which is also positive for Japanese companies." MATT SIMPSON, SENIOR MARKET ANALYST, CITY INDEX, BRISBANE "Whether we call it the Trump pump or the Taco trade, it's all the same really. Asian indices are broadly higher on headlines of the U.S. and China extending their trade truce by 90 days. "The Topix may have been first to its record it just seemed a matter of time before the Nikkei joined the club." TAKAMASA IKEDA, SENIOR PORTFOLIO MANAGER AT GCI ASSET MANAGEMENT, TOKYO "The Nikkei was not able to hit a record until today because chip-related shares and auto shares dragged the index. The Nikkei could soon peak as technology shares that led the Wall Street's rally have slowed down." NORIHIRO YAMAGUCHI, ECONOMIST, OXFORD ECONOMICS, TOKYO "Japanese equities are rising sharply due to a combination of positive factors, including the extension of U.S.-China tariff talks, the correction of tariff structures on Japanese product by the U.S., and the weak yen. "Trading volumes are low because it is the Obon holiday in Japan now. This is a time when equity prices tend to fluctuate significantly both up and down. Volatility is likely to remain high for the time being." HIROYUKI UENO, CHIEF STRATEGIST AT SUMITOMO MITSUI TRUST ASSET MANAGEMENT, TOKYO "The Nikkei could cross the 43,000 level. Investors who did not expect this sharp rise are scooping up stocks in a hurry. "U.S. economy is better than the market had expected earlier this year. And if the Fed starts cutting rates, shares are only going to go up. The Japanese corporate outlook is also better than the market had expected." YUTAKA MIURA, SENIOR TECHNICAL ANALYST, MIZUHO SECURITIES, TOKYO "Investors are buying back Japanese shares following a strong performance for U.S. equities over the long weekend." "A break above 43,000 for the Nikkei would open the possibility of a move to between 43,500 and 44,000, but there is a strengthening sense that the market is overheated." MASAYUKI KUBOTA, STRATEGIST AT RAKUTEN SECURITIES, TOKYO "In this environment where the value of money is declining, global investors are buying assets like gold, bitcoin, and stocks. Within that context, Japanese shares are relatively undervalued, and Japanese companies are increasing their buybacks."
Economic Times
13-06-2025
- Business
- Economic Times
Stocks sell off, oil surges as Israel strikes Iran
Israel reportedly struck Iran, triggering market turmoil amid already heightened tensions over Iran's nuclear program and U.S. efforts to curb it. Oil prices surged, while stocks fell as investors sought safe-haven assets like the yen and U.S. Treasuries. Analysts are closely watching for further escalation and potential impacts on global oil supply. Tired of too many ads? Remove Ads QUOTES: MATT SIMPSON, SENIOR MARKET ANALYST, CITY INDEX, BRISBANE: Tired of too many ads? Remove Ads JESSICA AMIR, MARKET STRATEGIST, ONLINE TRADING PLATFORM MOOMOO, SYDNEY: HIROFUMI SUZUKI, CHIEF FX STRATEGIST, SMBC, TOKYO: TONY SYCAMORE, ANALYST, IG, SYDNEY: Tired of too many ads? Remove Ads KARL SCHAMOTTA, CHIEF MARKET STRATEGIST, CORPAY, TORONTO: CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE: Israel said early on Friday that it struck Iran, and Iranian media said explosions were heard in Tehran as tensions mounted over U.S. efforts to win Iran's agreement to halt production of material for an atomic U.S. officials who spoke on condition of anonymity said there was no U.S. assistance or involvement in the operation. MARKET REACTION : U.S. stock futures fell more than 1%, oil prices jumped and U.S. Treasuries rose. The U.S. dollar, Japanese yen and Swiss franc rallied."A surge of one-way volatility to the demise of risk appetite is playing out on reports of Israel's strike on Iran, with traders pushing the yen, Swiss franc and gold higher while global index futures point lower."Oil prices surged 6% in minutes on supply concerns, taking its 3-day total to 12.3%. This could keep volatility elevated heading into the weekend, with traders likely wanting to hedge gap risks for next week.""We've seen equities stalling for some time, and it just appears that this is the catalyst that will probably send equities down lower. Stocks are up 30% globally, and you've got the MSCI World Index at a record, so there's room for fat to be taken off the table."What's going to continue to soar higher is, obviously, the defensive sectors, so utilities, energy, and also defence (companies) themselves."The (Middle East) region is a huge supplier of oil and obviously there's now the thinking that some of that supply could be cut off at a time when we've got demand really starting to pick up.""The situation in the Middle East has further deteriorated, and the heightened geopolitical risks are being strongly felt in the FX market. With the rise in risk-off sentiment, the Japanese yen is likely to be bought. The USD/JPY exchange rate is seeing the 140 yen level, observed in April, as a potential support level.""I thought Israel might give Iran the benefit of the doubt ahead of weekend talks with the U.S., but they've obviously decided to go it alone."While details are sparse regarding the targets, risk asset markets are not in the mood to wait and find out."This morning's alarming escalation is a blow to risk sentiment and comes at a crucial time after macro and systematic funds have rebuilt long positions and investor sentiment has rebounded to bullish levels. While we await further news and a potential response from Iran, we are likely to see a further deterioration in risk sentiment as traders cut risk seeking positions ahead of the weekend.""Traders are scurrying for safety as reports of a strike on Iran cross the wires, but details on the scale and magnitude of the attack remain scarce and moves have been relatively limited thus far.""The geopolitical escalation adds another layer of uncertainty to already fragile sentiment."The key question now is whether this marks a brief flare-up or the beginning of broader regional escalation. If the situation de-escalates quickly, markets may retrace some of the initial moves. But if tensions rise - particularly with any threat to oil supply routes - the risk-off mood could persist, keeping upward pressure on crude and haven assets."
Time of India
13-06-2025
- Business
- Time of India
Stocks sell off, oil surges as Israel strikes Iran
Israel reportedly struck Iran, triggering market turmoil amid already heightened tensions over Iran's nuclear program and U.S. efforts to curb it. Oil prices surged, while stocks fell as investors sought safe-haven assets like the yen and U.S. Treasuries. Analysts are closely watching for further escalation and potential impacts on global oil supply. Tired of too many ads? Remove Ads QUOTES: MATT SIMPSON, SENIOR MARKET ANALYST, CITY INDEX, BRISBANE: Tired of too many ads? Remove Ads JESSICA AMIR, MARKET STRATEGIST, ONLINE TRADING PLATFORM MOOMOO, SYDNEY: HIROFUMI SUZUKI, CHIEF FX STRATEGIST, SMBC, TOKYO: TONY SYCAMORE, ANALYST, IG, SYDNEY: Tired of too many ads? Remove Ads KARL SCHAMOTTA, CHIEF MARKET STRATEGIST, CORPAY, TORONTO: CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE: Israel said early on Friday that it struck Iran, and Iranian media said explosions were heard in Tehran as tensions mounted over U.S. efforts to win Iran's agreement to halt production of material for an atomic U.S. officials who spoke on condition of anonymity said there was no U.S. assistance or involvement in the operation. MARKET REACTION : U.S. stock futures fell more than 1%, oil prices jumped and U.S. Treasuries rose. The U.S. dollar, Japanese yen and Swiss franc rallied."A surge of one-way volatility to the demise of risk appetite is playing out on reports of Israel's strike on Iran, with traders pushing the yen, Swiss franc and gold higher while global index futures point lower."Oil prices surged 6% in minutes on supply concerns, taking its 3-day total to 12.3%. This could keep volatility elevated heading into the weekend, with traders likely wanting to hedge gap risks for next week.""We've seen equities stalling for some time, and it just appears that this is the catalyst that will probably send equities down lower. Stocks are up 30% globally, and you've got the MSCI World Index at a record, so there's room for fat to be taken off the table."What's going to continue to soar higher is, obviously, the defensive sectors, so utilities, energy, and also defence (companies) themselves."The (Middle East) region is a huge supplier of oil and obviously there's now the thinking that some of that supply could be cut off at a time when we've got demand really starting to pick up.""The situation in the Middle East has further deteriorated, and the heightened geopolitical risks are being strongly felt in the FX market. With the rise in risk-off sentiment, the Japanese yen is likely to be bought. The USD/JPY exchange rate is seeing the 140 yen level, observed in April, as a potential support level.""I thought Israel might give Iran the benefit of the doubt ahead of weekend talks with the U.S., but they've obviously decided to go it alone."While details are sparse regarding the targets, risk asset markets are not in the mood to wait and find out."This morning's alarming escalation is a blow to risk sentiment and comes at a crucial time after macro and systematic funds have rebuilt long positions and investor sentiment has rebounded to bullish levels. While we await further news and a potential response from Iran, we are likely to see a further deterioration in risk sentiment as traders cut risk seeking positions ahead of the weekend.""Traders are scurrying for safety as reports of a strike on Iran cross the wires, but details on the scale and magnitude of the attack remain scarce and moves have been relatively limited thus far.""The geopolitical escalation adds another layer of uncertainty to already fragile sentiment."The key question now is whether this marks a brief flare-up or the beginning of broader regional escalation. If the situation de-escalates quickly, markets may retrace some of the initial moves. But if tensions rise - particularly with any threat to oil supply routes - the risk-off mood could persist, keeping upward pressure on crude and haven assets."
