Stock Tumbles As Yen Gains Strength

On Monday, the stocks tumbled further losing more grip on the market; this was as result of the selling that was initiated by the yen surging past its counterpart the dollar. The 225-issue Nikkei average slipped 1.25 per cent, or 209.46 points to finally fall at 16,544.56 on the Tokyo Stock Exchange (TSE). Up to the end of last week, the key market mover lost up to 53.60 points.

It all boiled down to the Topix index of the whole first section issue which went down 1.02 per cent, or 13.72 points, to get to 1,335.84 after it had experienced a fall of 3.11 points earlier that week.

Effect of the Week’s Crude Oil Prices

The Tokyo market started off the week with huge losses following the shares at the New York market snapping a win for three consecutive days leading up to Friday that resulted from the plunge of the crude oil futures prices.

Investors resolved to sell all the export related firms with the growing fear of losing their earnings when the dollar further fell past ¥101 in the early morning on Monday. The fall was way than what was predicted by analysts and the investors.

“The market speeded up its downswing as the day came to a close with the U.S. dollar slipping through ¥100.90 with the absence of major buying incentives,” indicated over at the CMC Markets website.

Other Factors Responsible for the Market Change

In addition to the plunging experienced in the currency rate arena, financial firms, for instance insurers and mega-banks, fell onto this selling when the Governor of the Bank of Japan (BOJ) Haruhiko Kuroda made a speech in Osaka that afternoon.

Further Governor Haruhiko Kuroda detailed that the Bank of Japan’s decision at the end of last week to take charge of the long-term interest rates whereas the negative interest rate to be picked up by the current account deposits by financial firms at the central bank.

Implication of the U.S. Presidential Debate

Analysts had their eyes set for the presidential debate on Monday between Hillary Clinton and Donald Trump. The debate made the investors wary about the possible effects on the market that the debate could reproduce.

Every market player was keen to listen to the remarks related to the Trans-Pacific Partnership trade pact and the dollar-yen rates. So much had been placed on the possible outcome that led Clinton place Trump on the defense with possible effects of the debate still imminent.

Some of the Falling and Rising Issues

Numerous issues in the market played huge roles in the market. The falling factors way outnumbered the issues that were surging. In the Tokyo stock Exchange’s section the falling issues were at 1,326 while the rising ones stuck at 527. Additionally, 124 issues were remained unchanged.

At the TSE, the total volume slipped to 1.53 billion shares, a figure varying from Friday’s 1.96 billion shares.

Mega-banks Mizuho, Sumitomo Mitsui and Mitsubishi UFJ had to be sold alongside insurers Tokyo Marine and Dai-ichi Life. Some of the greatest losers in the export related segments included the automakers Honda and Toyota with giants in the electronic sector such as Panasonic and Hitachi also falling in the same bracket.

Downswings and Upswings in the Market

Noticeable downswings were also witnessed among the oil companies such as Showa Shell, JX Holdings, and Inpex which resulted from the crude oil market downfall.

However, Line surged by 4.75 per cent, this was as a result of a newspaper report on Monday that indicated the Japanese free messaging app provider has attracted the interest of U.S. venture capital.

Additionally, among other players that were able to attract the more points included the drugmaker Takeda, Japan Tobacco, camera maker Canon and retailer Seven & i Holdings. This time, investors placed their interests on what seemed to be viable and considered history and reputation in the market of these firms.

In the index futures available for trading in the Osaka Exchange, the main December contract on the Nikkei average fell 170 points to finally reach 16,400.