The Nikkei 225 index fell sharply from an intraday high, pressured by selling pressure on the back of weaker-than-expected earnings forecasts from Nidec Corp., a company with a heavy weighting. The decline in the session suggests that investors are reluctant to take on risk.
The main burden on the Japanese yen is the negative interest rate policy, which makes it an unattractive investment for foreign investors, as the fact of negative interest rates is a key factor. This scan caused a massive panic on the market, leading to a 16% drop in the company's stock price.
In general, the appreciation of the Japanese yen against the dollar optimizes investment flows, but as companies, heavily dependent on exports, tend to become more competitive in the long run.
"The decline in the index is a reaction to the fact of earnings: sales on the fund are not enough to cover the demand, and the shock from the scan of Nidec," said an expert from IHS Markit. "One reason is that the demonstrirovanie of positive dynamics for the support of technological and other sectors".
Analysts on the Japanese bourses are not in a hurry to make a verdict, pointing to a positive dynamics for the support of technological and other sectors.
